Combine retirement accounts now that I'm self employed?

[hhins]

So, here's my story...

No debt other than recent home purchase. No kids, etc. I'm 31.

I have $70,000 in a 401k (No longer contributing, from past employer)
I have $33,000 in a Roth IRA (Contributing the max every year but it's not really enough)

Currently self employed (via LLC/S-corp) with no retirement funding set up.

I'm not 100% sure if I'll remain self employed forever, or even in the next few years so I don't know if I should be moving/changing things around.

My questions...

Should I move my 401k to something under my business?
... or should I combine my accounts?
... or what would allow me to contribute more?

Thanks for any thoughts!

[disneysteve]

Should I move my 401k to something under my business?
... or should I combine my accounts?
... or what would allow me to contribute more?

What you do with your existing accounts has no effect on how much you can contribute going forward.

You can rollover the 401k into an IRA. That would give you much more control over the investments and most likely give you lower expenses as well.

While you are self-employed, you can fund your Roth IRA up to $5,500/year. If you can save more than that for retirement, open a SEP-IRA and fund that as well. You can have both.

[TBH]

I agree with Steve. I'd roll over the 401k into an IRA, continue to fund your Roth, and open a SEP IRA for any additional savings beyond what you put in your Roth.

I'm self employed, and I have a part-time job with a 401k.

I have:
A rollover IRA from a previous job's 401k
A ROTH IRA
A 401k from my part time job
A SEP-IRA

Because I need the tax write-off to offset self-employment taxes, I am currently funding my SEP-IRA and not the ROTH with a percentage of my self-employed income. I also contribute to my part time job's 401k.

[hhins]

Thanks for the replies so far.

So, rolling over the 401k to a traditional IRA - I wouldn't be contributing any more still but I'd have more control due to more fund choices? (and since both are pre-tax, it should be pretty straightforward...right?)

I'll look into a SEP-IRA, just getting back into all this retirement fun again.

It just felt like I should have one big fund vs a few smaller, growing funds but I suppose diversity is important as well.

[disneysteve]

So, rolling over the 401k to a traditional IRA - I wouldn't be contributing any more still but I'd have more control due to more fund choices?

Exactly. With your 401k you are limited to whatever investment choices the plan offers. If you move it to an IRA, your options are limitless. You can buy pretty much any fund, any stock, bonds, even real estate and commodities if you wish (not that I'm suggesting that).

[hhins]

Exactly. With your 401k you are limited to whatever investment choices the plan offers. If you move it to an IRA, your options are limitless. You can buy pretty much any fund, any stock, bonds, even real estate and commodities if you wish (not that I'm suggesting that).

Thank you again, it sounds reasonable:

Roll over 401k to new IRA, contribute up to the 2013 limits
Continue funding Roth IRA as I am today
Open SEP-IRA for any remaining (up to the limits if able)