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401K + Roth plan and brokerage?

I have a 401K from my employer where the company matches 100% of the first

4% you invest. I am investing 10% at this time since I became eligible about 6 months ago. I also have a 401K in another account from a previous job, plus stock from that previous employer that total under $10,000 combined. I'm thinking of lowering my 401K contribution to the minimum 4% for the match, rolling over the old 401K into a new Roth IRA, plus start contributing the max $3,000 into this new IRA. I also want to get rid of the previous company stock and invest the proceeds into a mutual fund or index fund instead. I want to consolidate everything other than my current company 401K into one broker. I am considering Ameritrade, T. Rowe Price or Sharebuilder . So my retirement plan will be to invest 4% of my income into my current company 401K, $3000 a year into a Roth IRA instead of putting more than the company match into the 401K. I want to retire in about 30 years when my new home mortgage is paid off. What is the best broker to invest in a Roth IRA with the least loads and maintenance fees as well as invest in the mutual fund or index fund with least amount of fees, loads etc.?. Then I will need to figure out what specific funds to invest in.
Reply to
John
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John, do you know how much of that stock distribution would be taxable? The tax rules on this are tricky but sometimes it's better to leave company stock in the plan. It depends what kind of plan it is, the purchase price, and the current price. (Might not be an issue.)

If you're unsure your former employer should provide you with info about how the shares are held & what the tax treatment would be if you took a distribution.

-Tad

Reply to
Tad Borek

Reply to
John

If the shares are part of the 401k, you will liquidate the position like any other within the 401k. The normal rollover rules apply.

But your original post gave the indication that the shares were outside of the plan, if that's true then there are possible tax issues.

Reply to
BMS

I thought 401K is pre-tax contribution and Roth IRA is after-tax. So it doesn't make sense if you can roll-over 401K in to Roth IRA without paying taxes. Or am I missing something?

IP.

Reply to
IPavlov

You've got it right.

Reply to
Will Trice

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