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  1. #1
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    What to do with small 401k’s?

    I have two 401k’s from previous employers. Each have about $900. Suggestions would be appreciated.
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  2. Member
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    #2
    I'd roll over an amount that small and fund this years IRA with it.

  3. Stocks/Investments Moderator boneil's Avatar
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    #3
    I was in a similar situation several years ago, and cashed out the money to pay off some credit card debt. I would use the money to either pay off some debt or start another retirement account. Credit card debt can be a real killer, but not having retirement sucks even more later on in life.
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  4. Member
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    #4
    Open up a IRA and roll them all over into the IRA. Fidelity and Vanguard are good. I rolled mine into a Vanguard account. Do it direct so you don't pay any taxes.
    dvl2700

  5. Member TomM's Avatar
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    #5
    Quote Originally Posted by dvl2700 View Post
    Open up a IRA and roll them all over into the IRA. Fidelity and Vanguard are good. I rolled mine into a Vanguard account. Do it direct so you don't pay any taxes.
    dvl2700
    Yep, roll them all into one.

    Tom

  6. Scraps
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    #6
    I would think cashing out comes with a steep penalty. Rollover costs nothing.
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  7. Member
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    #7
    Yep, What krindgen said

  8. Member
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    #8
    Trustee to trustee IRA rollover

  9. Banned
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    #9
    Roth if possible, pay tax now not later on the growth...

  10. Member
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    #10
    Too little information here. Is it currently in a traditional 401k or a roth IRA? Early withdrawal is subject to your federal and state income tax rate plus 10% withdrawal penalty if you are under 59.5 years old unless you qualify for an exemption. Or about $90 per 401k in your case. Choosing between rolling it to a traditional ira or a roth ira really depends on what your current tax bracket is and what you expect your retirement tax bracket to be in. It's not a black and white answer.
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