Small 401k left from first job. What to do with it?

ejb245 · **Joined:** Tue Aug 02, 2011 8:53 am **Posts:** 21

I was at my first job for only 8 months in 2007/2008, but had enrolled in the company's 401k. While I didn't put much in, it's done quite well considering I only contributed for 6 months. The account currently has $2,325 in it. The question is, what do I do with it? Keep it there and let it grow unassisted or put it into something else. What choices would I have? I don't "need" the money, but even though it's been doing well, it seems silly to leave it at a company that I don't have any connection with any more. My current job does not have a 401k plan, so I can't roll it into my new company's plan.

Any advice would be appreciated.

VinTek · **Joined:** Fri May 04, 2007 8:14 pm **Posts:** 1025

I believe that you can roll it over into your TSP.

Or you can try to roll it into a traditional IRA. This shouldn't be a problem, unless the amount doesn't meet the minimum for the fund you have in mind.

Or you can roll it into your Roth IRA. You'd have to pay the taxes on it if you do that. Also, I'm not sure if you have to roll it into a Traditional IRA first and then convert into your Roth.

Bichon Frise · **Joined:** Fri May 04, 2012 2:23 pm **Posts:** 717

rollover to tIRA. You can then convert to rIRA if you feel taxes are something you can/want to handle.

VG's STAR fund and Target date funds have $1000 min investments.

TSP should take the funds as well.

ejb245 · **Joined:** Tue Aug 02, 2011 8:53 am **Posts:** 21

I'll look into it. I don't have a TSP, only the hubby does. If I convert to a traditional IRA that goes against how much I can put into the Roth this year though, right?

VinTek · **Joined:** Fri May 04, 2007 8:14 pm **Posts:** 1025

ejb245 wrote:

I'll look into it. I don't have a TSP, only the hubby does. If I convert to a traditional IRA that goes against how much I can put into the Roth this year though, right?

No. Rollovers do not count against your normal investment limits into an IRA.

ejb245 · **Joined:** Tue Aug 02, 2011 8:53 am **Posts:** 21

Awesome! Thanks for that. That was one of the reasons I was hesitant to do it!

GoldbergFinancial · **Joined:** Wed Sep 12, 2012 7:33 am **Posts:** 36

DON'T PUT IT IN A TSP PLAN

I can't believe anyone would even offer that as advice on here. 5 fund choices then more target date crap, what a waste.

Roll it over into an IRA and invest in any freaken thing you want via ETF's, gold, copper, water or any stock or sector in any stock market with no fees.

You can work with an advisor to manage too, I manage accounts that small for my clients as well as some TSP plans but IRA's are the way to go.

www.GoldbergFinancialLLC.com

Small 401k left from first job. What to do with it?

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