What to do when waiting for 401k to kick in?

[deek]

I got a new job beginning of August. Place of employment is now an ESOP and I am not eligible until I've been here 1 year.
What do you recommend as far as putting any savings I would put toward the 401k if I was eligible?
I also have some money left in an old 401k that I haven't moved out of the company it was taken over by. Should I transfer that over to a Vanguard Roth?

[SwordGuy]

The first thing to do would be not post the same question 4 times in a row. :)   Have you reported them as duplicates?

[deek]

I don't know what was going on. It timed out and I left - didn't know it would actually post. Sorry!!

--duplicates removed

[GnomeErcy]

Depends on how much you were saving/planning on saving.

I'd put money into an IRA for starters.
If you can max your 401(k) between August and the end of the year comfortably, do it - if not, I'd maybe save up some money so that I could whittle down savings during that time and still max it. (ex: save up the $1541.67/mo in a savings account, and then starting August, crank up my contributions to be $3700/mo so that I could max 401(k) in 2018. If you can cover your expenses with what's left, great. If not, you have that saved up $1541.66 * 7 to help cover that difference.) This may not be possible depending on what your employer allows you to contribute...one of my old employers wouldn't let you go past X% contributions.

Otherwise taxable account?

[simonsez]

I also have some money left in an old 401k that I haven't moved out of the company it was taken over by. Should I transfer that over to a Vanguard Roth?

What are the fees it currently has?  I imagine there are good odds you can find lower fees in an IRA.  Is the amount at least 10k?

Why do you want to transfer to a Roth IRA instead of an IRA?  This could be a viable move depending on several factors but am curious that this was your first inclination to pay taxes now on something initially tax-deductible.

[Outside the Box]

If your new 401k offers good fees/funds, see if you can roll old 401k directly into new 401k.

You don't want a Traditional IRA if you plan to ever do back door roth (pro rata rule) when your income is too high for tIRA deductibility. Paying taxes to go from your 401k to Roth IRA could make sense if you're in a low income bracket now, but we'd need more info like others have said.

Basically need the info on your current funds and fees in your existing 401k account, whether you can leave it parked there until your new one is active (this usually depends on balance and/or length of service, check with the custodian [the bank/broker/servicer]), and your current marginal tax bracket when you file taxes.

If you don't know that last part, approximate income, filing status, and whether you itemize or take standard deduction. Please give us a fuller picture of your financial situation for more personalized advice.

[DS]

https://forum.mrmoneymustache.com/investor-alley/investment-order/