If you roll it over into a roth now you will save the fees that you would incure just leaving in the 401K. You will have more control and flexibility. And will pay tax on it now, not when the bill is due on this great debt of ours. I believe we will be paying higher taxes in the future.
1989, I kinda hafta respectfully take issue with this.
With a Roth, you can only invest up to $5000, if you're over 50, a year. With a 401K, you can invest up to, what is it this year, $15000. Control? Well, what's not to control in your 401. There are alot of different funds to move it around in. Sure there are alot of different funds in Roth also. I say, "What's the diff"? Besides, in today's economy, NOTHING is gonna work.
Taxes? Right now, I want all the tax-deferment I can get. I have been maxing 401 for a number of yrs and it's worked great on taxes. Taxed at a higher rate later on? That much higher to make a diff? I don't think so.
The last few yrs, even with 401 maxing out, I've been taxed at 35%. Last yr, because of being out on dis for alot of months, and my income being slashed, I was taxed at 15%. I figured that when I retire (hopefully within the yr), with pension, early SS, wife's income, we'll be right at what I made last yr on dis, 15%, and I can make it on that just fine. Even if it jumps to 20% or 25%, it's still better than the 35% I was getting hit with working all year.
Do what you must, but in my case, this works just fine. Well, when the economy works just fine, that is.