I was looking for some perfect investment group and i found it here. Also< As it is also related to 401 plan, It will give me an opportunity to discuss about new 401k contribution limit and 401k catch up contribution limit.

IRA
1. Tax deductible contributions (depending on income level).
2. Withdraws begin at age 59 1/2 and are mandatory by 70 1/2.
3. Taxes are paid on earnings when withdrawn from the IRA.
4. Available to everyone; no income restrictions.
5. All funds withdrawn (including principal contributions) before 59 1/2 are subject to a 10% penalty (subject to exception).

ROTH-IRA
1. Contributions are not tax deductible.
2. No Mandatory Distribution Age.
3. All earnings and principal are 100% tax free.
4. Available only to single-filers making up to $95,000 or married couples making a combined maximum of $150,000 annually.
5. Principal contributions can be withdrawn any time without penalty (subject to some minimal conditions).

Tax Deferred vs. Tax Free

The biggest difference between the Traditional and Roth IRA is the way the U.S. Government treats the taxes. If you earn $50,000 a year and put $2,000 in a traditional IRA, you will be able to deduct the contribution from your income taxes (meaning you will only have to pay tax on $48,000 in income to the IRS). At 59 1/2, you may begin withdrawing funds but will be forced to pay taxes on all of the capital gains, interest, dividends, etc., that were earned over the past years.
On the other hand, if you put the same $2,000 in a Roth IRA, you would not receive the income tax deduction. If you needed the money in the account, you could withdraw the principal at any time (although you will pay penalties if you withdraw any of the earnings your money has made). When you reached retirement age, you would be able to withdraw all of the money 100% tax free. The Roth IRA is going to make more sense in most situations. Unfortunately, not everyone qualifies for a Roth. A person filing their taxes as single can not make over $95,000. Married couples are better off, with a maximum income of $150,000 yearly.



Keeping the money in 401K at this time of the economy vs converting to IRA:

This is very subjective question. Assuming the 401K is with the past employer answer to your question depends on following questions:
1. Control: Do you want to be the one to control or the employer control in terms of what funds/stocks/bonds you can put your money in?
2. Flexibility: Do you have flexibility to change the funds / money manager?
3. Performance: Are you happy with the performance of your 401K?
4. Support: Who is supporting/guiding you to make your fund selection decisions?
5. Guarantees: Are there any guarantees on your principal / investments? Because there are programs that can be leveraged to secure your principal but most 401K wont allow that?

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-Tax benefits when keeping money in IRA accounts: See above

-Any recommendations on what companies to consider for investment in such accounts.
There are plenty of good companies but you need to sit down with a financial advisor first and find out your objectives and options. Once you have that laid out, your objectives can be mapped to different programs/products/companies.

If you need more information feel free to ask.

Can someone explain the
- Benefits of ROTH IRA vs IRA
- Keeping the money in 401k at this time of the economy vs converting to IRA
- Tax benefits when keeping money in IRA accounts
- Any recommendations on what companies to consider for investment in such accounts.