401K help...

[98tegRS]

Let me start off by saying I love the advice I get from this site. I've been reading many posts over the past few months and this is my first...
here is my minor dilemma.
My current employer offers a 401K with a 50% match. Merrill Lynch handles the details. I currently have $1,675 tied up in the plan, not much being that I decided to make the jump into the plan a few months ago.
I am now faced with a much better opportunity and will be leaving my current job for a better position, but their 401K sucks, no matching at all
I just wanted some advice on possible options for that $1,675 that is currently tied up in my soon to be former employee's plan. I'm not sure if their will be fees associated if i quit the job and then try to move the money. For now i am thinking about working part-time. I will be able to make contributions as a PT employee, but lose the company 50% match...i may need to being that my car was just stolen, but thats another headache

Thanks in advance...

[safari]

You can roll over your balance into a personal IRA account without paying any fees.

[jIM_Ohio]

roll it over to a rollover IRA

then consider converting to a Roth IRA, using outside money to pay the taxes.

you must rollover prior to converting to Roth, unless rules have changed within last 18 months or so.

[Coleroo]

Yes, roll it over to a Roll Over IRA. You lose control of the investing decisions if you leave the employer with money in their account - and some employers even make you cash it out if its a small balance like yours.

Also, check with your new employer if they allow Rollovers. Some companies allow you to roll over an old account directly to them.

As long as you stay with a traditional IRA account you will not incur fees / taxes.

How old are you? If you are very young (in your 20s) you may also consider just rolling over then converting strait to ROTH IRA. You'll have to pay the taxes now but it will build tax-free earnings for your retirement.

[98tegRS]

Thanks for the advice...I wanted to roll over into a Roth IRA, but from reading more I realized I cant do that. I'll be 25 in December finally I get a break on insurance. I guess I'll start looking into rolling over into a Roll Over IRA. Now i just have to pick which company i chose to have the IRA with...thanks again

[jIM_Ohio]

T Rowe price works well for me

[anonymous_saver]

I would go with Vanguard. They have extremely low fees compared to the other companies out there.

[George23]

Good advice by all - you almost always want to roll over 401k money into an IRA once you leave the employer.

[Like2Plan]

Thanks for the advice...I wanted to roll over into a Roth IRA, but from reading more I realized I cant do that. I'll be 25 in December finally I get a break on insurance. I guess I'll start looking into rolling over into a Roll Over IRA. Now i just have to pick which company i chose to have the IRA with...thanks again

98tegRS,
You will have to roll it over into a traditional IRA, first. Then you roll it over into a Roth from the traditional IRA.