I'm a bit unsure of how best to go about saving, paying off a remaining cc balance, and rolling over my 401k, so I'd appreciate some guidance for the below situation.
For reference, I am 29 years old and single, have a $11k school loan at 5.5%, and $3600 cc debt w/ 0% as my only debts. Also, I currently rent, but would like to become a homeowner in the next 3-4 years.
The first situation involves my $2477 401k at a former employer, for which I have already begun the rollover process. I realize that I could roll it over to my current employer's 401k, but my current employer doesn't provide any match at all. Therefore, my next option for the money is converting it to a ROTH IRA once its been rolled over. I haven't yet contributed for 2006, and would like to get as much in there before April 2007 for the satisfaction of knowning that there's something in there for 2006, even if its not the $4k max. I am in the 25% tax bracket, so I estimate that converting the Rollover IRA to a Roth will cost me approx. $693 (do I pay this separately, or is it deducted from the rollover amount automatically? also, are there any other fees associated w/ conversion?) Once converted, I can contribute additional money for the ROTH so it will equal $3000 by April 2007. Is this a sound idea? I thought about leaving it in the Rollover IRA, but then I would only have $1150 in my ROTH for 2006 (what I can afford to contribute between now and April). What am I better off doing?
Secondly, I have about $1000 in ING - trying to build up my emergency fund. Had a few thousand in there last year, but relocation depleted most of my funds. I am currently contributing about $600/month towards this EF. Should I instead put this money toward the $3600 cc debt (for which I am currently paying down at $350/mo. since it is 0% interest) so that it can be paid off more quickly? I feel uneasy about doing this and not building up my emergency cushion.
Finally, I have additional continuous savings for Christmas and Vacation expenses. Where is the best place to house this money? Does ING allow you to have multiple savings accounts for different purposes?
Thanks for your help!