switched jobs - what to do with 401k, IRAs, etc.

[ECeptor]

I switched jobs the first week of November. The previous company matched $1.20 for every $1 I put in up to my contribution of 10% (22% total).
My new company matches $0.50 for every $1 I put in up to my contribution of 6% (9% total).
So, couple questions.
1) What to do with my existing 401k? I've heard about rolling it into IRAs, Roth IRAs, or into my new 401k. Thoughts?
2) I need to contribute 13% more of my pre tax salary to some retirement to match my old contribution rate. Where should I put that money - 401k, Roth IRA, IRA or somewhere else (don't tell me to put it in my boat...I'm fighting that temptation enough already!).
Any advice, from investing pro's or average joes, is much appreciated!

[mondorally]

I switched jobs the first week of November. The previous company matched $1.20 for every $1 I put in up to my contribution of 10% (22% total).
My new company matches $0.50 for every $1 I put in up to my contribution of 6% (9% total).
So, couple questions.
1) What to do with my existing 401k? I've heard about rolling it into IRAs, Roth IRAs, or into my new 401k. Thoughts?
Check and see if you can even roll it into the new 401 (k). Most won't let you roll over previous contributions. If they won't, roll it into a IRA. Roth or Traditional depends on your specific situation.
2) I need to contribute 13% more of my pre tax salary to some retirement to match my old contribution rate. Where should I put that money - 401k, Roth IRA, IRA or somewhere else (don't tell me to put it in my boat...I'm fighting that temptation enough already!).
You'll probably have to put it into the 401(k) for two reasons - (1) The company probably won't match on IRA contributions and (2) The IRA's have a cap of $4k ( me thinks) wihile the 401(k) has a cap of $14k.
Any advice, from investing pro's or average joes, is much appreciated!
Smart Money (http://smartmoney.com/retirement/?nav=dropTab) 's website has some really good info on IRA and 401 (k) conversions, tax implications, etc.
Justin

[Supultlbich]

Find out how much your new company will allow you to contribute to there 401k/457 whatever should be around 15%, and get that started. As far as your existing 401k I would roll it into an individual IRA and forget about it.
As far as a ROTH goes I believe, and could be wrong, but I dont think you can roll your existing 401k because a ROTH is all based on after tax contributions, hence the reason ROTH IRA's are capped at 3k per year.
I would make some phone calls and find someone you are comfortable dealing with. After that this should all be one stop shopping as far as setting everything up.
Good luck!!

[SummitKarl]

I switched jobs the first week of November. The previous company matched $1.20 for every $1 I put in up to my contribution of 10% (22% total).
My new company matches $0.50 for every $1 I put in up to my contribution of 6% (9% total).
So, couple questions.
1) What to do with my existing 401k? I've heard about rolling it into IRAs, Roth IRAs, or into my new 401k. Thoughts?
2) I need to contribute 13% more of my pre tax salary to some retirement to match my old contribution rate. Where should I put that money - 401k, Roth IRA, IRA or somewhere else (don't tell me to put it in my boat...I'm fighting that temptation enough already!).
Any advice, from investing pro's or average joes, is much appreciated!
roll it into a ROTH IRA...best thing I ever did,,
if you need money from your IRA you can take the earned interest out with no penalty

[Sleek-Jet]

You can roll a 401K into a Roth, but you'll have to pay taxes. Once it's there though, all growth is tax free and you don't have to pay taxes when you start drawing on the Roth IRA.
I rolled my 401k into a Traditional IRA when I changed jobs. It is now performing better than my current 401k... :rolleyes:

[ECeptor]

Thanks for the info.
I forgot to mention I'm 34 so the money will be there for at least 20yrs before I pull from it (not sure if that makes a difference).

[INSman]

Cash it out and buy a new DCB F29 :hammerhea

[Cole1313]

SOme good ideas here. But also ask your new employer if their current plan allows you to invest in an IRA 401K. They are new for this year and the contibution limits are much higher, and there are no income stipulations. The money is invested in a Roth IRA outside the companies plan. It gives you alot more investment options. If you have any questions, PM me.

[Cole1313]

Thanks for the info.
I forgot to mention I'm 34 so the money will be there for at least 20yrs before I pull from it (not sure if that makes a difference).
actually it will be there till you are 59 1/2, unless you want to be penalized and taxed.

[ECeptor]

Find out how much your new company will allow you to contribute to there 401k/457 whatever should be around 15%, and get that started. As far as your existing 401k I would roll it into an individual IRA and forget about it.
As far as a ROTH goes I believe, and could be wrong, but I dont think you can roll your existing 401k because a ROTH is all based on after tax contributions, hence the reason ROTH IRA's are capped at 3k per year.
I would make some phone calls and find someone you are comfortable dealing with. After that this should all be one stop shopping as far as setting everything up.
Good luck!!
I have to wait 6 months before I can participate in the new companies 401k...so 4 months to go.
As for finding a financial advisor - what are the typical fees involved? Per the recommendation of an aquaintance a few years ago I visited with a guy and his company took 5% straight off every dollar I would have invested with them...I walked away from that guy after 1 meeting.

[ECeptor]

actually it will be there till you are 59 1/2, unless you want to be penalized and taxed.
This is exactly the sort of stuff I need to learn.
Any books you can recommend I read on the subject?

[Cole1313]

I have to wait 6 months before I can participate in the new companies 401k...so 4 months to go.
As for finding a financial advisor - what are the typical fees involved? Per the recommendation of an aquaintance a few years ago I visited with a guy and his company took 5% straight off every dollar I would have invested with them...I walked away from that guy after 1 meeting.
Usually an advisor depending where he works and the size of the account, you can usually expect to pay 1-1.5%.
As far as good books go: find a good advisor and he will teach you. but if you want to do some reading on your own try the intelligent investor, by ben graham. Some people think it is outdated, but the basics are still there.

[Supultlbich]

Usually an advisor depending where he works and the size of the account, you can usually expect to pay 1-1.5%.
As far as good books go: find a good advisor and he will teach you. but if you want to do some reading on your own try the intelligent investor, by ben graham. Some people think it is outdated, but the basics are still there.
That sounds about right for the commision. We have all of our accounts with TD Waterhouse, and have no complaints. I'm sure you could call them, Fidelity, Schwab, or any of the big companies. Some howver will require a minimum balance to start.
As far as the exact fees I couldnt tell you. The money is automaticly deducted from the checking account each month, and I dont balance the check book. I will say that in the big picture It is easier to "set it and forget it" . The fees are fees, yoour going to pay them but in the long run you will come ou way ahead.
Good luck