If you've recently left a job or been laid off, you may be wondering if it makes sense to convert your old 401(k) into a Roth IRA.
It probably does, if you think you're going to be in a higher tax bracket later andyou have the money to pay the taxes you'll incur with the conversion.
A Roth IRA can be a great investment vehicle, allowing you to contribute after-tax money for retirement now, invest those funds and take the money out tax-free at retirement (after age 59 1/2).
Rather than leave a 401(k) with your old employer, you can convert the balance into a Roth IRA at nearly any financial institution.
The cheapest alternative is probably a low-cost mutual fund company, like Vanguard, Fidelityor T. Rowe Price , where there are no commissions and, in most cases, no account fees if you meet some basic requirements. You'll only need a $1,000 to $3,000 minimum balance to get started.