Can I move my 401k over to a Roth IRA?

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Can I move my 401k over to a Roth IRA? I just turned 21 and joined the 401k plan here at my company. I%26#039;m contributing exactly what the maximum match rate is. When I leave the company I plan to move my money over to a Roth IRA. If I join another company with a 401k plan can I still keep my Roth IRA and eventually consolidate the new 401k into the Roth?

Best Answer

you can...but it makes no sense to do so...better to leave pre-tax money in pre-tax accounts and make your own contributions to a ROTH IRA.

Diversity of contributions and distributions streams are equally as important as diversity of investments. That way you%26#039;ll be covered should tax rates rise or fall....don%26#039;t think they%26#039;ll fall???? What do you think a flat tax will do to tax rates?

My recommendation is put money into your 401k and a ROTH. When you leave your current job ends transfer that money into a pre-tax IRA and begin anew with your new employer.

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Other Answers (6)

Good answers regarding the roth. Simply rollover the old 401k within 90 days and you%26#039;ll be set with another retirement account.
Do homework regarding any investment product especially annuities. They have high management fees and usually cap your returns. They also have the highest commission rate in the financial products arena.
Call your plan administrator and ask questions. That is what they are there for.
Good luck!
Yes, you%26#039;re better off once you roll it over to a Roth IRA because you have more choice where you can put the money. Mame sure you get a fixed annuity. The returns may be low, but at least you can not lose. My wife lost $5000 in 5 days. She stopped contributing in her 401k because of the loses. I believe you%26#039;re permitted to put away $4000 per year in an Roth IRA but you should check with your bank.
You can%26#039;t move a regular 401(k) account directly to a Roth IRA - it would have to be to a conventional IRA. Conventional retirement accounts are pre-tax dollars, Roth accounts are after-tax dollars.
Yes, but you would have to pay penalties.

Better to move it to a Traditional IRA and put other money into a Roth IRA.
yes, you should be able to.

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