rolling over an old 401(k)

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.

Most advisors will tell you to roll your 401K into an IRA where you 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?

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

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

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

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.

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.

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.

Aar> "DFIGTREE" writes:

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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

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