Need some financial advice

SteelBlueTJ

macrumors 6502
Original poster
Apr 2, 2012
325
25
USA
I need some advice from some money experts. I recently left my job and started a new job at a different company. I had a 401k plan with my old job, but only have about $9k in there as my balance. I can roll it over into my new plan with my new company or take it out in a lump sum. I also have about $14k left on a student loan with 3% interest. I am tempted to take the lump sum and put it towards the student loan. I know i will loose some from taxes. Not sure what to do. Thanks
 

DDaddyx2

macrumors regular
Jan 6, 2012
100
7
Indianapolis, IN
If you take the lump sum then you will have to pay taxes on it immediately. The money you put into the 401k was untaxed. Unless you GOTTA have the money right now, roll it into your new company's 401k or put it into an IRA. Both will keep you from being taxed.
 

Ray Brady

macrumors 6502
Dec 21, 2011
290
244
Roll it over. You will almost certainly make more than 3% in a halfway decent mutual fund. If you could pay off your entire student loan by cashing out, I could see the appeal of the closure, but it's not worth the tax hit to pay off less than half of it.
 

4JNA

macrumors 68000
Feb 8, 2006
1,505
1
looking for trash files
where are you at, and where do you want to go.

90% of the time, the above is true.

i would ask for more info. your age or a range if that is to personal.

your basic in/out ratio, that is what do you make vs. your monthly expense. how much left...

what are your options in the new/rollover account, that is are these provider only options, or can you pick your own, and what are the account expenses?

nothing wrong with the general forum approach, but if you are young and looking for a long term strategy, a CFP or expert might be worth your time/money. just my two cents.