Comments on: Roll your savings into an IRA or 401(k)? http://www.bankaholic.com/finance/roll-your-savings-into-an-ira-or-401k/ Blogging about personal finance and economic policy Wed, 08 Feb 2012 15:02:04 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Ian http://www.bankaholic.com/finance/roll-your-savings-into-an-ira-or-401k/comment-page-1/#comment-25823 Ian Mon, 06 Jul 2009 18:18:57 +0000 http://www.bankaholic.com/finance/?p=902#comment-25823 The difference in contribution limits generally doesn't matter in choosing whether or not to roll your money over into a new 401(k) or IRA. The reason is because you can contribute the maximum amount to both an IRA and 401(k) in the same tax year. So if your new employer offers a 401(k), you can contribute up to $16,500 to that plus another $5,000 to your Traditional IRA (or more to both accounts if you are older than 50). I personally prefer the IRA option as it allows me to keep the greatest amount of control over my money and gives me the most investment options. The difference in contribution limits generally doesn’t matter in choosing whether or not to roll your money over into a new 401(k) or IRA. The reason is because you can contribute the maximum amount to both an IRA and 401(k) in the same tax year. So if your new employer offers a 401(k), you can contribute up to $16,500 to that plus another $5,000 to your Traditional IRA (or more to both accounts if you are older than 50).

I personally prefer the IRA option as it allows me to keep the greatest amount of control over my money and gives me the most investment options.

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