Ira Rollover Deals
April 10th, 2006
Question: Can You Hep Me With My 401k Dilemma?
I had a 401k account account with a previous employer; after leaving the company I rolled the remaining balance (a meager $1,900) over to a rollover IRA…which now stands at $1,300.
Here’s the deal, I’m not contributing to that Rollover IRA, so my balance is shrinking at an alarming rate. Although, $1,300 is not a lot of money, it’s still mine, and I don’t want to lose anymore.
So what should I do, the funds I have in it are: BSCFX, FCNTX, FDIVX, and FFFX. I’m considering taking the money out, and facing the penalties, since I’m most likely going to lose that small amont of money anyway. I mean–I don’t see the point of leaving it in the Rollover IRA, If I can’t offset the losses with contributions.
Moreover, I did start a new job last month, can I “rollover” a “Rollover IRA” to my new employer’s 401k? I’d prefer this option, if possible. I’m going to contact Fidelity, but I wanted to hear from the average Joe first. Your thoughts…
Answer: used to be that you couldn’t taint a rollover ira with contributions without jeopardizing your ability to roll it into a new 401k. Not the case any more so long as they money is 100% comprised of pre-tax contributions and earnings. So, contribute or rollover to new companies 401k…it’s all up to you.
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