How can i take my 401k and roll it into a Roth IRA should i do them all?

Question

I have 3 401ks I'm not sure On what the best move would be please help me.Thanks.

Answer 1

i believe you should talk to your financial advicer at your local bank.

Answer 2

You can, but you'll have to pay tax on all that 401k money now, as it has not been taxed yet. There are usually few circumstances that this would make sense.

You really should discuss this with a CPA or fee only financial advisor.

A much simpler plan is to find a brokerage or mutual fund company and do a rollover IRA to a traditional IRA. Doing a Trustee to Trustee rollover, where you never see the money, means there will be no tax consequences, and you can move the money out of your 401k to where ever you wish to.

I did this very thing about 2 years ago. Whatever company you choose to move the funds to will help you out and provide you with all the necessary forms and instructions.

Answer 3

Consider rolling them into a "Rollover IRA".
This is a different kind of IRA from your Roth but it behaves in a similar way.
If you combine your 401k into your Roth IRA then it is difficult to split them apart and roll it back into a 401k with a new employer.
If you can safely say you will never want to go back to a 401k then go ahead and combine everything.

Another tip is that FDIC insurance is upto $250k of your total IRA assets with a specific investment company.
So you might want to split the accounts across multiple investment companies if you are fortunate enough to have a boat load of money.

Answer 4

You will first have to move them into a Rollover IRA. From there you could convert them into a Roth (assuming your AGI is below $100k), but you would owe taxes on all of the money since Roth IRAs are funded with after-tax money.

I would suggest that you setup your Rollover IRA with either Fidelity or Vanguard.

Answer 5

Log on to Fidelity's website... get a rep on the phone...no hard sell, just help combing everything into one IRA account that you cann just invest in or actively trade in if you want. It is not complicated or difficult...they handle most of the paperwork... tell 'em who's got your money, they'll go get it!
Depending on who they are getting it from it may take a few weeks or months but you'll end up with everthing at your keyboard...while you're waiting read up on investing...funds, stocks, etc.
Plenty of beginning investing sites...yahoo... moneycentral/msn...beginnersinvest.com...and the Fidelity site.

Answer 6

You could also set up a self-directed IRA where you control the money yourself instead of having someone else do it for you. You can invest in real estate, for example. Here's a website for a company I know of that allows self-directed IRAs: http://www.trustetc.com If you have questions, email me at [e-mail]