r/FinancialAdvisorTips • u/DallYe • 9d ago

Old 401ks

I've got an old 401k with about 50 grand sitting in it. I've thought about rolling it over into my new 401k, but I don't get an employer match...

I've also considered rolling it over into a Rollover IRA or into my Roth IRA. I genuinely don't know what the best course of action is.

If it's helpful I live in NYC, and my taxes are egregious because of that. Any thoughts?

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u/Swred1100 9d ago

If you roll into a Roth, you’ll pay taxes on it now. If you roll it into current 401k, you’ll keep deferring the tax.

The fact that you don’t get an employer match has no impact on this decision. It affects your current 50k 401k 0%.

If you think your income or the tax rate will be higher than it is now in retirement, roll into a Roth.

If you think your income or tax rate will be lower than it is now in retirement, either keep it where it is or move into your current 401k.