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Advice on SIMPLE IRA and 401k

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Money Talk > Retirement Planning

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scale
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Advice on SIMPLE IRA and 401k  Reply with quote  

I am not sure what to do here.

My previous employer offered a SIMPLE IRA and they matched. I contributed the matched amount there and had that for 10+ years.

My new employer has a trad 401k where they also match. I contribute the matched amount there but doesnt add up to the full 18k you can have contributed per year. I think it comes in around 12k or so.

My old SIMPLE IRA has just been sitting for 3 years....no additions or changes but it appears to be still climbing.

I dont know if

1. i should roll over the SImple IRA into my 401k and just start contributing the max per year to the 401k

2, i should keep the Simple IRA around and just let it ride....or perhaps contribute here

3. Other

I dont know the best course of action here. I have let it set for 3 years now and figured i better start asking what i should do with it.
Post Fri Oct 07, 2016 5:45 pm
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Publius
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Location: Georgia
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A few points here. First, the $18k contribution cap is on YOUR contributions, not the combination of yours and the match. So if, hypothetically, your company matched anything you put in there 100%, you could put in 18k, then the match would be 18k, so you would be getting 36k. The maximum an individual can put in INCLUDING the match is around 52k, but is subject to more complex rules within the company.

To your specific questions:

1. Rolling it into the 401k doesn't really get you anything if you arent' paying high fees for the IRA. You have more investment choices in the IRA. But if you want to simplify and you have good investment options in the 401k plan (and they allow you to roll money into it -- not all plans do), it doesnt' really hurt.

2. You might not be able to contribute to the IRA and get any tax advantaged treatment depending on how much you are contributing to the 401k and your income level.

3. If you can get up to contributing the 18000 max to the 401k, I would look at a taxable account at a discount brokerage company like Vanguard or Fidelity after that. Depending on who manages the 401k, you may be able to view all the accounts in the same place if you use the same management company.
Post Sat Oct 08, 2016 5:03 pm
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scale
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Cash: $ 0.45

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Joined: 07 Oct 2016
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THanks

So...to recap

1. Leave the IRA if i am not paying high fees or unless i want to simplify by having one account
2. The max i can contribute not including the employer match is 18k so focus on getting to that every year.
3. After that open a taxable account at a discount brokerage firm

I am not sure if i can still contrbute to the IRA as it sits now or not. I need to check into this.

Thanks again.
Post Thu Oct 13, 2016 3:11 am
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Petert0204
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Retirement Planning  Reply with quote  

An IRA with LUSO is the best option when it come to saving for retirement. IRAs can be tax-deferred or possibly tax-free but may not have an employer matching your contribution, like in a 401(k). However, you can expect comparable or greater growth as IRAs offer more flexibility when you find ways to invest and grow. Rolling Eyes

Refer to this link: http://www.lusofederal.com/certificates-deposit-individual-retirement-accounts-ludlow/
Post Mon Oct 24, 2016 3:51 am
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