So it finally happened... (job loss)

[cougs4bcs]

Thank god I have an emergency fund!!!! My expenses are low though, and I am cutting back from what I was spending before. Also, completely forgot about unemployment benefits until I actually realized I should file... I'm hoping I can survive on just that and not have to tap into my emergency fund.

E-fund - 8k
Spending - ~1.5k/mo
Also...
Car fund - 4k
Retirement...
Roth - ~7k
401k - ~2k

Have had a few interviews lately so shouldn't need to tap into it at all hopefully. Glad I stumbled on you guys and my confidence in my finances has never been better.

Also, is there any way I can roll my 401k over into my Roth IRA? I know I can put it into an IRA but could I directly transfer it to my Roth? I'd like to keep most of my retirement savings after-tax for now (I'm 23 and assume that I'll build up a nice 401k over the years).

Thanks all.

[Jerry91]

It is possible to roll-over your 401k into Roth IRA if you have left the company where you have the 401k account. In order to do so, you will have to follow the Adjusted Gross Income limits. Also, you should note that converting your 401k into Roth IRA will also depend upon your plan administrator. Also, the amount that you convert will be taxable.

[kork13]

Sorry to hear about the job loss, hopefully one of the recent interviews ends up as a job offer soon... Your expenses are okay, and as you've said, that's exactly what an EF is for. Good luck to you!

Also, is there any way I can roll my 401k over into my Roth IRA? I know I can put it into an IRA but could I directly transfer it to my Roth? I'd like to keep most of my retirement savings after-tax for now (I'm 23 and assume that I'll build up a nice 401k over the years).

As far as your options for the 401k, you can roll your 401k into a traditional IRA at any time. You can also just keep it in your current employer's plan for now until you get a new job, then at that point you can roll it direct from 401k to 401k. Both of those options will preserve the pre-tax status. If you prefer after-tax with a Roth, you will have to roll your 401k into a traditional IRA, then subsequently re-characterize that as a Roth. To my understanding, you cannot do this directly, it MUST go through the trad. IRA first. You'll owe taxes as a part of that transaction, but you'll get it into your Roth as after-tax funds. I'll be honest, I don't know the exact requirements and procedures of doing all of that shifting around, but that is at least the process you'll go through.