Thread: Retirement plan
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      11-19-2012, 02:28 PM   #6
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Originally Posted by E36_325i View Post
Yes, you need to find out which financial firm managed each companies retirement plan and get them all to cut you a check. You can roll all the plans into your current plan to consolidate them.
Originally Posted by gatorfast View Post
Your basic options will either be to 1. have them cut you a check (not recommended since you will incur taxes and early payment penalty) 2. Roll the funds into your current employers 401K 3. Roll the funds into a traditional or Roth IRA
A little bit of misguided information here.
There's really zero point(and zero benefit) to rolling balances from previous plans into your current one...besides maybe the "feel-good" factor of seeing one big amount all in one place.
Otherwise, rolling them all into an IRA is going to be your best bet. As long as you complete a direct rollover, there will be no penalties to worry about. Additionally, having those funds in an IRA(as opposed to a 401k) will give you a lot more freedom regarding investment options.

Roth vs Traditional is always a tough debate. There are a significant number of what-if's and other assumptions to be made in order to come up with a definite answer on which is going to be better. Keep in mind though, if you convert those pre-tax 401k dollars into a Roth, you may wind up getting hit with a pretty large tax burden next time you file.

Side note: All of these posts seem to assume it's a 401k(or 403b). Probably a pretty safe bet, but calling it a "retirement plan" is about as generic as saying "I have a 2009 car".