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Ask Dave

401k at Previous Employer...Now What?

Clinton needs to roll over the 401K from his previous job to a Roth IRA.

QUESTION: Clinton has a 401-K at a previous employer.  What should he do with it now?

ANSWER: Anytime you leave a job you should roll your 401-K to a Roth IRA if you can afford to pay the taxes, which you could do with some cash from your fully-funded emergency fund. 

You should never roll your 401-K to a current employer.