Rollover IRA or 401K

I have taken my 401K money from my former employer which was not invested in anything but Money market. I need some advise to either put that money into my current employer 401K which the employer does not match or open a roll over IRA which can be flexible.

Thanks

Aidan2008,

It is good that you have acquired your current position.

It is usually best if you move the old 401k to an IRA. This will give you additional investment options. First choose your IRA custodian and cotntact the custodian. Tell them what you want to do, and they will handle the transfer through a trustee to trustee transfer. This is a non-taxable event.

As for your current employer's 401k, because there is no employer matching contribution, you may be better off making your contributions to a ROTH IRA or a Traditional IRA. The ROTH IRA has many more benefits over the TIRA, but if you need the tax deduction, then you should use the TIRA. But note you will get that deduction only when you file your income tax return. Maximize your IRA contributions for the year (for years 2008 and 2009, $5,000 plus $1,000 if over age 50).

Then if you want to save more for your retirement, make contributions to the 401k plan.