[LuxLiving]

I would rollover the old money and leave it in a traditional rollover account and just let it grow for now. I wouldn't be willing to take the $693 hit! Even if your employer did match contributions they aren't going to match a rollover amount anyway, only what is deducted from your current salary. Rollover and let it grow.

Regardless of no matching dollars I would still contribute to my employer's 401-K program - it lowers the amount you pay in taxes! $$'s that could be yours to spend!!

Then I would start a separate Roth IRA and begin funding it now for your 2006 contributions. As another poster said - the money already contributed to one in the past does not keep you from putting in the total $4000 additional contributions for '06.

ING is one option for savings. There are other online banks who are offering better interest at the moment.