What should I do with my profit sharing plan check?

I received a $12K check from my profit sharing plan because my employer is retiring. Should I open a traditional Or Roth IRA? I don't have any retirement accounts and am only working part time.

Financial Planning, Retirement
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August 2016

Hello,

Thank you for the question. Essentially what you are looking at is a rollover. Here is an IRA chart and article on what you can and can't do with rollovers.  It would appear that you will need to roll it into a traditional IRA first, and then if you want to have a Roth IRA, you can do a Roth Conversion after the rollover is complete.

I would encourage you to meet with a CFP professional to help work through what your options are and what would be most appropriate for your situation.

Thank you,

Derek Notman

August 2016