What to do with 401K?

bridetobe920

Hi there,

I'm soon to be a SAHM to our three year old daughter and two month old son). Currently, I am still on maternity leave.

I look forward to posting here!

I hope you all can chime in on something. If you previously worked outside of the home and had a 401K account, what did you do with the funds? I have heard that an IRA might be the best bet, but I know there are two kinds and we (admittedly) don't know much about either.

TIA for any feedback!

LegallyBlonde217

I would rollover the 401K funds to a traditional IRA.  That's actually the only type of IRA you can roll into. 

bumpuser8448316

Hav=Fath said:

Dude, I read this thinking "I could do SO much with $401,000". It's been a long day.

Yup, I did too. I opened it ready to flame someone for AWing their need to spend that kind of money hahahha OP: I rolled mine into a traditional,IRA. It's still with the same firm that held my 401K. Welcome to the board!

WhitePicketFence

I also rolled mine into a traditional IRA. Depending on your situation, it may also make sense to then convert your traditional IRA to a Roth IRA, although there are tax consequences for doing so.