[removed]
I’ve only been in the US for a few years, so this is all I have in my retirement account here. I recently quit my job to become a SAHM for now because childcare almost equaled my wage. My husband is working and supporting us. My retirement account with Principal has let me know it’s under their limit to stay in that account so I need to roll it over somewhere. It’s $3200. What would be the best account to put this in?
[removed]
Roll it into a vanguard ira and put it into vtsax or voo and leave it
She can’t do VTSAX. Thats the admiral shares price and they require a $10,000 buy in
Roll it over to a Roth IRA with Fidelity or vanguard. If it’s pretax, they treat it as taxable income, but it’s tax free when you pull it out. Do 70% VTI, 30% VXUS.
What type of retirement account is the money currently in? Is it pre-tax or post-tax?
It’s pre tax, Principal 401k account
The zero funds at Fidelity are great, like FZROX - no fees and no minimums. Roll it to an IRA.
Roll it to an IRA. Vanguard and Fidelity have been suggested and are great options. A lot of people like Schwab, too. Both Fidelity and Schwab have offices I can walk into within a 5 mile radius of my house. If face-to-face is important to you, use one of them. The IRA from a roll will be a traditional IRA; pre-tax rolls to traditional, and Roth rolls to Roth. Once the money is in a traditional IRA, you *can* convert some or all to Roth if you wish...whatever you convert gets taxed.