The Question
401k account with my former employer401k account with my former employer
I have a 401k account with my former employer. I want to roll it over to the best account possible. Not sure which is the best option. I would also like to withdraw 20 thousand of that after moving it to the new account. What’s the best options here.
Hi Dylan,
I’d probably look at rolling the old 401(k) into an IRA. The pre-tax portion can generally roll into a Traditional IRA, while Roth assets can roll into a Roth IRA.
Before making the move, I’d compare the investment options, fees, services/advice, creditor protection, and any plan-specific benefits you may be giving up. I’d also look closely at the $20,000 withdrawal first, since your age and tax situation could impact whether taxes or an early withdrawal penalty apply.
There isn’t one “best” option for everyone, so I’d weigh all of those factors before deciding.
-Jeff
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