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

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ejb245
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Small 401k left from first job. What to do with it?

Postby ejb245 » Mon Jan 28, 2013 1:41 pm

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

Postby VinTek » Mon Jan 28, 2013 2:11 pm

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.

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

Postby Bichon Frise » Mon Jan 28, 2013 2:49 pm

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.
Bichon Frise

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ejb245
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Re: Small 401k left from first job. What to do with it?

Postby ejb245 » Mon Jan 28, 2013 2:51 pm

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

Postby VinTek » Mon Jan 28, 2013 3:05 pm

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

Postby ejb245 » Tue Jan 29, 2013 7:59 am

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

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

Postby GoldbergFinancial » Wed Feb 13, 2013 11:56 am

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

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

Postby Jerry » Mon Jul 29, 2013 12:30 am

If you have a job with a new company, then you can roll over the existing 401k into your Roth IRA account.
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stannius
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Re: Small 401k left from first job. What to do with it?

Postby stannius » Mon Jul 29, 2013 12:10 pm

Jerry wrote:If you have a job with a new company, then you can roll over the existing 401k into your Roth IRA account.


What? That's not even correct. Your current employment status has zero effect on your choices with a 401k from a previous employer.

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

Postby VinTek » Mon Jul 29, 2013 12:11 pm

Pssst...Stannius...

don't feed the troll. He's answering a post from last February. The OP has probably done whatever he was going to do months ago. Jerry's just being...Jerry.

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

Postby stannius » Mon Jul 29, 2013 12:15 pm

VinTek wrote:Pssst...Stannius...

don't feed the troll. He's answering a post from last February. The OP has probably done whatever he was going to do months ago. Jerry's just being...Jerry.


Wow, that's ironic coming from you... I feel like I made that very same comment in a reverse situation.

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

Postby VinTek » Mon Jul 29, 2013 12:49 pm

You mean this thread? My post was about thread necromancy. I was trying to discourage RayInPenn from continuing that practice. I thought there'd be a chance there. I figure with Jerry, there's no chance at all.

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

Postby stannius » Wed Jul 31, 2013 8:59 am

VinTek wrote:You mean this thread? My post was about thread necromancy. I was trying to discourage RayInPenn from continuing that practice. I thought there'd be a chance there. I figure with Jerry, there's no chance at all.


No... I recall an interaction perhaps a month or two ago between you and I wherein you asked a borderline spammer to justify his position, I responded to you that it was just a spammer, and you said you knew that but were trying to combat their misinformation for the benefit of future readers. Or something like that. My recollection is too vague to find the thread in question, sadly.

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

Postby VinTek » Wed Jul 31, 2013 9:33 am

stannius wrote:No... I recall an interaction perhaps a month or two ago between you and I wherein you asked a borderline spammer to justify his position, I responded to you that it was just a spammer, and you said you knew that but were trying to combat their misinformation for the benefit of future readers. Or something like that. My recollection is too vague to find the thread in question, sadly.

I don't remember that incident but yeah, I'll cop to it because it does sound like something I would do. Unfortunately, when it comes to Jerry, nothing actually helps, including asking questions about his reasoning when he posts.


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