Where should someone in a low tax bracket move his 401(k) from a former employer?

I'm 23 years old.  I have a 401(k) account with my old company, but I have since left the company. Now the money is just sitting there and I want to contribute to it. I want to hopefully open up my own account so I can continue contributing to it. I am thinking may a Roth IRA or something like that since I'm in a low tax bracket as a single, part-time employed, college student. How do I move it? Where do I open an account? Should it be an IRA?

401(k), IRAs, Taxes
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3 weeks ago
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Yes, a Roth sounds like the best option for you.

But there are a couple of steps.

1) Open a Traditional IRA at Betterment.com

2) Get the Rollover/Distribution form from the old company 401k provider. This may be one online too.

3) Choose "Rollover" on the form and enter your new Trad IRA account # and address of Betterment

4) Once the money is in the Trad IRA, it may make sense to do a Roth Conversion (a fee-only adviser can help)

5) Now you have a Roth with money already in it. You can add to it also. Automate a monthly amount.

Boom!

Hope that helps...

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