401k----IRA??? help!

Soliloquy, MSN, APRN, NP · Mar 18, 2015

I believe the money in the 401k is yours but you can move it into a rollover ira so that you can keep your money in one place as opposed to several different accounts. Having your money all over can become very confusing when it's time to collect it. Also, if you decide to buy a house as a first time home buyer, you can take some money out of your rollover ira without any penalties.

**NICU Guy, BSN, RN** · Mar 18, 2015

401K are company retirement plans and IRAs are individual retirement plans. Once you switch jobs, you can keep the 401k with the previous employer, transfer it to your current employer's 401k, or move it to an individual IRA. You are not required to move your money from your IRA to your new employer's 401k. If you are working for a traveling company, you can keep your money in the company's 401K regardless of what state you are working.

NedRN · Mar 18, 2015

401s are employer based, nothing to do with "your" state. The employer can require you to roll over or cash out (a taxable event also subject to a penalty) your 401 to another retirement account when you leave employment, and you may prefer to roll it over anyway (your choice if not required) for better control or the convenience of consolidating.

Roth accounts are post tax contributions, regular IRAs are pre-tax contributions as are most 401's. If you rollover a 401 into a Roth, you will have to pay income taxes. If you rollover into a regular IRA or another 401, there are no taxes due.

Got it? It can be confusing. You can have both Roth and regular IRAs, as many as you like.

Employer 401's (403's are the same thing from a non profit employer) are a great way to expand your retirement account contributions over the limited annual contributions to a personal IRA. There is a gotcha associated with most agency accounts though. Look at the funds offered carefully. While they look like regular funds you can buy on the open market and are based on name brand funds with similar returns, you will notice they have a different ticker number. In addition, most agency 401's have an unnecessary annuity shell. The small fry that run around "selling" the 401 plans have to get paid somehow. One big selling point for the agencies is no cost to them.

Bottom line is extra costs, admittedly very well hidden, even if you look at the plan documents (which I have done). Still, there is a benefit to contributing the maximum amount you can to a 401 and a way around the extra costs. Sign up for the money market fund instead of a stock or bond fund. It won't earn much interest, but your capital will be preserved. Then you simply roll it over into your own IRA when your assignment(s) with a particular agency is done.

guest12/23/15 · Dec 16, 2015

If you will become a travel nurse and the company does offer 401k you will be able to keep contributing regardless in which state you are in because your employer is in your home state.You will not be able to Roll over unless they allow in-service withdrawal (might have to keep some money in your 401k). The maximum you can put in it is $18,000 (2016 limits) which will be tax deferred until you will start withdrawing the money. Just remember that you will not be able to touch the money till 59 1/2 or you will pay 10% tax penalty on the money you want to withdraw. There are some exception such as rule 72t,economic hardship, buying a first house but all this strategies have a specific guidance to follow the IRAs rule book. Hopefully this will help.