401k decision

[Roupey03]

I Currently changed jobs. Now I am getting a letter from my previous employer saying I need to rollover my 401k or I will be subject to 6 dollars a month inactive fee. I believe it is worth about 5,000. Due to not all the money being vested I am entitled to 3,500.

Do I roll it over into my new jobs 401k?
Do I go with another 401k rollover like T Rowe Price?
Or Do I take the penalty pull it out and place it in my Roth to grow tax free?

I am 23 years old and currently have a Roth IRA through Trowe Price.

[sweeps]

If you already have an account with T Rowe, roll it over to a T Rowe IRA. Be sure to let them handle it -- don't take possession of the money yourself.

You can optionally convert it to a Roth IRA -- there is no penalty but you will have to pay taxes.

[disneysteve]

I agree. Roll it into an IRA. Do a direct transfer. Call T.Rowe and they can handle everything for you.

[jIM_Ohio]

I would roll the 401k over to T Rowe.

Then look at tax situation and decide if a Roth conversion makes sense.

I have both a Roth and a rollover account at T Rowe. My wife also has a Roth and rollover account too.