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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June 2017
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One method is to transfer (not rollover!) your 401(k) money into two separate IRA accounts.  Your pre-tax money (the money that was subtracted from your salary) can be transferred into a traditional IRA and your after-tax money (where you didn't get a salary reduction) can be transferred into a Roth IRA with the same institution as your traditional IRA.  This will give you maximum flexibility.

Be sure to do two transfers, not rollovers.  The IRS has become very picky about rollovers since 2016 and you should avoid them wherever possible.  Once you decide which broker should hold the two IRA accounts, they will have a transfer form to have the funds moved from your 401(k) into your two new IRAs.

In addition to these transfers, you should contribute 5500 dollars each year to a Roth IRA--either the same one as above or a different one.  If your salary for any given year is less than 5500 then you can contribute up to the total amount of the salary listed on your W-2 form.

Having IRA accounts from a young age allows you to grow your money tax-free for decades.  Roth IRAs are best since you will never have to take required minimum distributions or to pay taxes on the money.

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