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Easy Come, Easy Go & 401K Questions

September 10th, 2018 at 12:11 pm

I received multiple checks today that I had been waiting on so I went ahead and made a trip to town to deposit and pay some bills.

I paid the mortgage, our final real estate tax installment, my estimated self employment income tax for the year, and paid the rest towards the credit cards. Whew, it is crazy when several thousand go in and out in one day. But it feels good to tick some bills off.

Husband's first day at his new job is today. He was feeling quite sad about leaving his old one all weekend. They really did love him at his old job. His coworkers got together and gave him a card and $150 as a goodbye gift, and he received a gift card for dining and some cookies and candy. His boss said if he ever wants to come back he is welcome. It is a real shame that he had to give up such a nice job due to expensive health insurance. USA healthcare stinks.

Over the weekend we went out with friends and spent some of his gift money on having fun and taking his mind off the new job.

Now for a question. I've seen it mentioned that instead of putting his old 401k in his new 401k that we should move it to an IRA. What is the benefit of this, when all three accounts are at Vanguard and in the same funds? His 401K and his IRA are both ROTH. Can we move rollover his Roth 401K to his Roth IRA without any penalties or taxes? I plan on calling Vanguard and discussing with them but I have to add myself as an agent on his account first.

1 Responses to “Easy Come, Easy Go & 401K Questions”

  1. Jenn Says:

    Having the funds in an IRA gives you more control. You eliminate the risk of high expenses or restrictions that the employer might impose - either now or later.

    One drawback: if you leave the company after age 55 (but before 59.5), there's a way to access the money penalty-free if it's in a 401k. That isn't true of an IRA. With yours being a Roth 401k though, maybe this is irrelevant.

    So it depends upon your situation - like most things.

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