Hey guys, so I have a 401k through my job. I'm leaving this job by the summertime, at which point, I will be allowed to rollover the funds in my 401k. I currently have a Roth IRA set up at Vanguard. I am debating whether I should roll it into my Roth IRA or whether I should do something else with it. I am just looking for suggestions. Thanks in advance
@Jayb5635 wrote:Hey guys, so I have a 401k through my job. I'm leaving this job by the summertime, at which point, I will be allowed to rollover the funds in my 401k. I currently have a Roth IRA set up at Vanguard. I am debating whether I should roll it into my Roth IRA or whether I should do something else with it. I am just looking for suggestions. Thanks in advance
Is it a traditional, tax deductable 401K or a Roth 401K ? If you roll pre-tax retirement money into a Roth, tax will be due
and there will be paperwork to file. Even if your 401K is a Roth 401K, any employer matching funds are pretax money
and tax will be due on them if/when you roll over into a Roth. Rolling into a Roth even if tax is due can be a smart move,
depending on your circumstances. Or you could open a traditional IRA to roll the funds into.
I've changed jobs a few times over the years and I've always let the rollover specialists at Schwab do the work. It has
gone without a hitch every time. The people I've dealt with were very knowledgable and answered all my questions before
doing the rollovers per my request. I don't know this for a fact, but I would guess that major brokerages or fund families like
Vanguard and Fidelity have similar services to do rollovers for their clients. It's a free service, I'd take advantage of it.
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Ok I will once the time comes. I'm thinking to let it be taxed and rolled into my Roth IRA