Rollover IRA to 401(k)?

[Guest Mrs.Z]

I have the option to start in the begining of July - 401(k) with my new employer . I have an existing Traditional IRA with Mutual Fund with less that $ 5000 in it. What is better in my case? To have both or to rollover my IRA to 401? My employer will match up to 5% of my contributions.

Thanks in advance!

[John G]

Keep both. Try to contribute either to a Roth or IRA with the new employer. Your 401 funds often must be invested using a restricted list of options. Your IRA/Roth is not so limited, and can be invested to balance the total.

Take advantage of the 5% match! This is a huge plus for you. That 100% first year return.... most folks would be happy if they doubled in around 7 years. You are doing it immediately.

Beyond the 5% match, you are likely to be better off funding a Roth if you qualify.

[Guest Mrs.Z]

Thanks for your advice! Nice to hear from someone with expirience!