Agree with st-watcher completely. The two points are definitely valid.
1. from 10 or 20 investment choises to thousands choises.
2. the fees are hidden in 401K and they are mostly a lot higher than the fees you get in regular mutual funds.
st-watcher 发表评论于
if AGI is not over the limit so you can put money into Roth IRA (so there is no need to T-ITRA then convert it to Roth IRA).
My understanding is: you can only contribute to one IRA (not two) for one specific year (assuming full contribution).
st-watcher 发表评论于
Some advantages for roling 401K to IRA:
- more investment choice!
- maybe less management fee (Some brocker even offers incentive or free trading ETF or stocks if the amount is big enough).
Foe me, I will roll to IRA (roll-over IRA, not Roth) for sure.
Your article is really misleading others because it does not offer a complete picture.
If the person leaves the company, he/she can transfer 401k to a roll-over IRA without any tax impact. The difference between roll-over IRA and traditional IRA is that the money in roll-over IRA can be transferred to another 401k account while traditional IRA cannot.
This is exactly what I did recently.
With time, people can choose to convert roll-over IRA to Roth IRA gradually depending on their tax situation.
回复颐和园的评论:
for 2012: AGI大于183k，就不能直接买ROTH了。详情请看这：
http://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Amount-of-Roth-IRA-Contributions-That-You-Can-Make-for-2012
