I know this is a common topic, but I am a bit lost at what is the best option for our situation.
I recently left my job to care for our 3 children. My husband is a resident and will be finished in 4 more years. I have a ~$50k 401k that I need to figure out what to do with. We have no need to borrow from it and I would like to keep using the money as a long term retirement investment vehicle. I do not have any plans to return to work in the next 5 years (if that matters).
I know I could leave it where it is, but I seem to remember the management company's fees (Financial Engines) being pretty high. I've left it alone while I was employed but I would prefer to take a more active role in its management now and put it in a place that will make the most financial (and tax) sense for us.
I've started looking into Vanguard IRAs but I'm not sure if Traditional or Roth makes more sense. I know we will be over the limits for a Roth contribution once my husband has a full year of attending salary.
The other piece of (maybe) relevant info is I cashed out on a large RSU shortly before I left, so our income is going to be pretty high this year (compared to the remaining years of residency), especially given I worked 7 months of 2016.
Any suggestions on where to start?
I recently left my job to care for our 3 children. My husband is a resident and will be finished in 4 more years. I have a ~$50k 401k that I need to figure out what to do with. We have no need to borrow from it and I would like to keep using the money as a long term retirement investment vehicle. I do not have any plans to return to work in the next 5 years (if that matters).
I know I could leave it where it is, but I seem to remember the management company's fees (Financial Engines) being pretty high. I've left it alone while I was employed but I would prefer to take a more active role in its management now and put it in a place that will make the most financial (and tax) sense for us.
I've started looking into Vanguard IRAs but I'm not sure if Traditional or Roth makes more sense. I know we will be over the limits for a Roth contribution once my husband has a full year of attending salary.
The other piece of (maybe) relevant info is I cashed out on a large RSU shortly before I left, so our income is going to be pretty high this year (compared to the remaining years of residency), especially given I worked 7 months of 2016.
Any suggestions on where to start?
Comment