Hi all! I am new at posting but really just not sure what to do with my retirement funds. Please forgive me if I sound ridiculous asking these questions.
From job 1, I have a Roth IRA and a Traditional IRA at Principal Bank. They have combined about $3k. They were rolled into an automatic IRA because I didn’t elect where to move it after leaving that job back in October of 2018.
I just recently left job 2 due to health issues, and I have now received info that I have about $4k from a pension that can be cashed out or rolled over into a Traditional or Roth IRA (Choosing Roth will count towards my taxable income next year)
From job 2, I have $8.5k in an employee savings plan at Fidelity. It contains both pre-tax and post-tax contributions.
A few questions now: 1) What to do with the savings plan from job 2? I believe I have the option to leave it there or roll it over to an IRA or a new employer’s plan. I am not currently employed as I’m taking time off, but I plan to try to start looking for work again by the end of the year... I may or may not completely switch fields as well. For reference, I am almost 25 years old.
2) Should I consolidate to one financial institution? If so, which one should I stay with - Fidelity or Principal Bank?
3) I definitely believe I should roll the pension funds over but would love advice about what is the smart thing to do with it. My fiancé is convinced we should pay the taxes and have the pension all rolled into a Roth IRA because Roth is “the way to go” at our age. What would you do with it?
4) Does any of this count as a “contribution” towards my annual limit? Specifically the pension.
So sorry it’s a little complicated. Thanks in advance!!
Submitted July 10, 2020 at 08:08PM by catsanon https://ift.tt/2W3zmdq
