I switched jobs the first week of November. The previous company matched $1.20 for every $1 I put in up to my contribution of 10% (22% total).
My new company matches $0.50 for every $1 I put in up to my contribution of 6% (9% total).
So, couple questions.
1) What to do with my existing 401k? I've heard about rolling it into IRAs, Roth IRAs, or into my new 401k. Thoughts?
Check and see if you can even roll it into the new 401 (k). Most won't let you roll over previous contributions. If they won't, roll it into a IRA. Roth or Traditional depends on your specific situation.
2) I need to contribute 13% more of my pre tax salary to some retirement to match my old contribution rate. Where should I put that money - 401k, Roth IRA, IRA or somewhere else (don't tell me to put it in my boat...I'm fighting that temptation enough already!).
You'll probably have to put it into the 401(k) for two reasons - (1) The company probably won't match on IRA contributions and (2) The IRA's have a cap of $4k ( me thinks) wihile the 401(k) has a cap of $14k.
Any advice, from investing pro's or average joes, is much appreciated!
Smart Money (http://smartmoney.com/retirement/?nav=dropTab) 's website has some really good info on IRA and 401 (k) conversions, tax implications, etc.
Justin