Aaron Mallin wrote:
- quote -

You could roll it over and then convert 1/2 of it right away, paying
the tax in your 2006 return. And then convert the other 1/2 in January,
paying those taxes in your 2007 return. That might reduce your total
extra taxes paid somewhat, depending on your tax bracket.

John Cowart

Aaron Mallin wrote:

- quote -

Keep in mind the tax bracket you are in. Taxable income over $30,650
(single) jumps to 25% from 15%, and over $74,200 is 28%, not as great a
jump, but worth noting and perhaps converting in two stages.
JOE

I think I will roll it over to firstrade.com and then convert it to a
roth and pay the taxes. I will then buy some vanguard, troweprice, and
dodge & cox international fund for no commission as Firstrade doesn't
charge commission for most no load funds (even vanguard & trowe). If
you want to open a firstrade account. Email me directly and I'll send
you a link. I'll get 5 free equity trades for referring you.

Aaron

BreadWithSpam[at]fractious.net wrote:
- quote -


======================================= MODERATOR'S COMMENT:
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"DFIGTREE" <david.Feigenbaum[at]verizon.net> writes:

- quote -

Think about having to deal with that former employer for
your financial issues. When I left a previous employer,
and left my 401k there, that employer morphed and tracking
down someone with authority/ability to let me get at my
401k money was a pain. One has to deal with a trustee
from the former company.

- quote -

Only if he insists on re-buying those load funds. He could
roll it into an account at a no-load house, or a brokerage
which has no-transaction-fee funds and find funds that are
as good as any and all of the funds he already has - without
paying loads or commissions to anyone.

- quote -

Convenience, access, control, availability of a better variety
of investments.

There are some reasons not to roll it over, but for most folks,
it make sense to do so.

--
Plain Bread alone for e-mail, thanks. The rest gets trashed.
No HTML in E-Mail! -- http://www.expita.com/nomime.html
Are you posting responses that are easy for others to follow?
http://www.greenend.org.uk/rjk/2000/06/14/quoting

DFIGTREE wrote:
- quote -

Until the very recent pension law was passed, a 401k left to a non
spouse was a pretty bad thing in term of ultimate tax consequences, and
logistics. That issue is gone.
Why do you feel the rolled 401k will generate any commission worth
avoiding? A roll to a Schwab IRA and for about 5 $12 commissions, you'd
be in 5 ETFs and pretty well diversified at a low annual expense cost.
But I'd agree, that if the 401k choices are that good, there's no huge
reason to roll. (Unless the further roll to a Roth is on the 'to do' list).
JOE

Aaron Mallin wrote:
- quote -

If the funds are all in the same fund family, it may be possible to
open an IRA account at that family and do a like-kind rollover. I did
that a few years ago. One day the funds were in my 401(k) account. The
next day, they were in my IRA, with no fees or charges of any kind.
Call the fund family to inquire.

Dave

Aaron Mallin wrote:
- quote -

I would suggest listing the funds. In General you will be able to find
equivalent "no load" funds from another family.

An alternative would be to ask the 401k custodian.

Aaron Mallin wrote:
- quote -

have control and lots of options. Pooey. If your expenses are low in
the 401K (and they probably are) and your company allows you to keep it
there after you've left without any negative consequences and you like
the investment options in the 401k, what's to think about? If you roll
your 401k somebody is going to get a nice commission. So, if someone
is telling you to roll it, ask yourself why?

I have an old 401k. I want to roll this over to an IRA and then convert
the IRA to a roth IRA. The thing is I like the funds that are in the
401k. If I would keep these funds in the IRA, I'd have to pay
transactions fees and loads (b/c some of the funds are load funds which
I don't pay b/c in the 40(k) it is a institutional share. Now I think
If just will keep the money in the 401k.

Any ideas or suggestions? I hear Firsttrade would let me buy no load
mutual funds for no fee, is this true?

Thank you,
Aaron