Against my better judgement, but a question

[Larsky]

My previous employer's pension plan (yes, they had a pension) is being terminated next month, and they're paying in a lump. Not going for an annuity, going to roll it over.

Probably sit on it for 10 years.

Would you:
A) put it into your existing 401(k) or,
B) Open a Roth IRA, and pay the taxes on the front end?

 

[sjay]

My previous employer's pension plan (yes, they had a pension) is being terminated next month, and they're paying in a lump. Not going for an annuity, going to roll it over.

Probably sit on it for 10 years.

Would you:
A) put it into your existing 401(k) or,
B) Open a Roth IRA, and pay the taxes on the front end?

A depends on investment options available in your existing 401
B depends on your current tax bracket vs your probable tax bracket when you start doing withdrawals, also your age is a factor.

 

[TNHarley]

I seriously doubt taxes will get much lower... something to consider.

 

[Ringel05]

My previous employer's pension plan (yes, they had a pension) is being terminated next month, and they're paying in a lump. Not going for an annuity, going to roll it over.

Probably sit on it for 10 years.

Would you:
A) put it into your existing 401(k) or,
B) Open a Roth IRA, and pay the taxes on the front end?

Take it and spend it like there's no tomorrow for tomorrow for you could end up panhandling on street corners...... And probably will if you follow my advice.........

 

[Toddsterpatriot]

My previous employer's pension plan (yes, they had a pension) is being terminated next month, and they're paying in a lump. Not going for an annuity, going to roll it over.

Probably sit on it for 10 years.

Would you:
A) put it into your existing 401(k) or,
B) Open a Roth IRA, and pay the taxes on the front end?

Doubt you can move it into a 401K.
Roll it into an IRA.

 

[MarathonMike]

Assuming you are under the modified AGI limits, it may be advantageous to roll into a Roth IRA.

 

[boedicca]

Go to Vegas. Bet it all on Red.

 

[Moonglow]

I'd invest it in cardboard futures..

 

[miketx]

Seems like a 401k is a sure fire way to at least double it.

 

[Moonglow]

Seems like a 401k is a sure fire way to at least double it.

How at the low rates being given?

 

[Picaro]

Taxes on capital gains are already about low as they will go, so just invest like normal, and stay away from 401K scams and tying it up in IRA's and other schemes.

 

[xband]

My previous employer's pension plan (yes, they had a pension) is being terminated next month, and they're paying in a lump. Not going for an annuity, going to roll it over.

Probably sit on it for 10 years.

Would you:
A) put it into your existing 401(k) or,
B) Open a Roth IRA, and pay the taxes on the front end?

I would put it in a 401-k and ignore college educated investment advisors who want you to diversify and play it like a high stakes poker game and you will have more than enough money to retire on. After I retired, put it in a seven year annuity which matures next year and I retired when 58 after decades of back breaking and stinking work. What am I going to do with that pile of money when I live comfortably without it? Donating it to the poor is not an option.

 

[Toddsterpatriot]

My previous employer's pension plan (yes, they had a pension) is being terminated next month, and they're paying in a lump. Not going for an annuity, going to roll it over.

Probably sit on it for 10 years.

Would you:
A) put it into your existing 401(k) or,
B) Open a Roth IRA, and pay the taxes on the front end?

I would put it in a 401-k and ignore college educated investment advisors who want you to diversify and play it like a high stakes poker game and you will have more than enough money to retire on. After I retired, put it in a seven year annuity which matures next year and I retired when 58 after decades of back breaking and stinking work. What am I going to do with that pile of money when I live comfortably without it? Donating it to the poor is not an option.

I would put it in a 401-k

Pretty sure you can only roll 401Ks into a current 401k.
This would have to go into a rollover IRA.