Should I roll over my 401k?

@bcote212 (1112)
United States
March 4, 2008 9:55am CST
I worked at a company for less than a year and had money automatically taken from my check at placed into a 401k by the company. There is not much just like $300. Since it is such a small amount is it even worth rolling it into an IRA or should I just cash it out?
2 responses
@goldeneagle (6774)
• United States
16 May 08
I actually just rolled my 401K from my former employer yesterday. One thing you have to look at here is that you will likely have no choice than to move it. Most 401K programs won't give you the option to leave it unless you have at least $1,000 in your account. First of all, you need to call the 401K company and find out whether you have a traditional or a ROTH 401K. This is important, because if you have a traditional 401K, you will have to roll it into a traditional IRA. Likewise, if you have a ROTH 401K, you will have to roll it into a ROTH IRA. You really don't want to cash your 401K out. If you do that, you are going to lose most of your money to taxes. You will also be making a good investment to your future and your retirement by getting an IRA. You will have to check with your financial institution and find out the details you need in order to complete your rollover. Your payroll department should be able to provide you with the paperwork you need. Be sure to ask about minimum balance requirements, but the money you will be rolling over should cover any minimum balance requirements.
@only1shi (405)
• United States
6 May 08
i would put it into an ira rollover and next year, make it a roth ira. if you take the money out now, you'll have to pay taxes on the money you withdraw. if you were to decide to invest it yourself, you would also have to pay investment costs. essentially double taxes on this money. but, if you have any kind of debt, then i would just take the money and pay down the debt.