# What to do with my 401K



## Free28 (Oct 3, 2010)

I am relocating to London from the US and do not know what to do with my 401K. Should I live it in the US and place it in a Roth account?


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## Bevdeforges (Nov 16, 2007)

If you transfer your 401K to a Roth, you'll pay tax on the lump sum "distribution" - which may or may not be your best option.

The answer to your question depends on your specific situation. You can just leave the 401K where it is and let the interest and dividends accumulate until you hit retirement age. You can roll it into an IRA tax free and let it accumulate. As long as you are living and working in the UK, you won't be able to add anything to the fund unless you have taxable earned income (i.e. earned income above and beyond what you are excluding under the overseas earned income exclusion).

It can also depend on your filing status. If you are filing "married filing separately" (as, for instance, if you are married to a non-resident alien) you don't have the option to open a Roth at all.

In any event, you don't necessarily have to decide before you go. You can always wait and see if you're going to stay overseas and then make whatever adjustments to your retirement funds you think are appropriate.
Cheers,
Bev


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## Free28 (Oct 3, 2010)

Thanks for the info!!


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