| Old 401(A)... what should I do with it? |
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okstate
Member
Cash: $ 2.60
Posts: 12
Joined: 01 Feb 2013
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| Old 401(A)... what should I do with it? |
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I just found an old 401(A) I didn't know existed. It has $700something in it.
It's from an old job I had. I've been trying to start getting my finances together and came across it.
Should I keep the 401(A)?
Convert it to a ROTH or Traditional?
I don't believe I can add to the 401(A) myself--- it was an employer sponsored plan and my former employer added some money to it.
I didn't know it existed until now-- it was a nice surprise.
My stats:
Age: 29
Income: Very little-- graduate school
Savings: None (maybe a few hundred extra in the bank at any time)
401(A): about $700
Retirement: None
Single
No kids
Own paid for car, nothing else
Tax rate: the lowest (grad school, little income right now)
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Fri Feb 01, 2013 4:04 am |
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oldguy
Senior Member
Cash: $ 751.85
Posts: 3656
Joined: 21 May 2006
Location: arizona
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Convert it to a Roth, if your tax rate is almost zero, your conversion will never be cheaper - then it will be tax-free fro life.
I would put it in a SP500 Fund at Vanguard or Fidelity and then add to it after graduation - historically it has returned an average 11%/yr. That first $700 would be $15,000 in 30 yrs.
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Fri Feb 01, 2013 3:11 pm |
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Anton Martin
Full Member
Cash: $ 15.00
Posts: 73
Joined: 23 Nov 2012
Location: Florida, USA
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| Convert it to Roth |
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Best option is to convert it to Roth or traditional account.
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Wed Feb 13, 2013 12:02 pm |
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