My mother is deceased and my sister and I are Trustees of her account now. We will be getting a few life insurance distributions that will be going into the Trust. If we fill out the form as the Trust receiving the distribution, should we withhold the taxes and how much?
I'm looking to close down this personal money market IRA I have with my bank and the amount I have in there is not too high. I was told by my bank agent, that a W-4R form needs to be filled before I can withdraw funds out of the account and close it down. If I put down "0" on line 2, I can simply calculate taxes i potentially owe on this distribution at the end of the year with my tax advisor correct? One last thing, I'm withdrawing the funds while under 59 1/2 age so i guess I'm also expecting 10% penalty on top of the standard tax deductions correct?
I have an annuity that has come to term and want to cash out. It was originally purchased with post tax dollars for $150,000.00. It is now worth $185,688.00. If I fill-out line 2 requesting a 25% witholding is it based on what I earned ($35,688.00), which is what only should be taxed or the entire amount of $185,688.00
The withholding should only apply to the taxable portion of your annuity. However, your *type of annuity* may play a role in how that works. There are different rules for taxing withdrawals from a qualified annuity vs a nonqualified annuity, so you might want to ask your annuity company how that will work for your situation.
I just came across your channel and subscribed. You break things down nicely and easy to understand, thank you. So my mom has a life insurance policy and is filling out a Life Partial Surrender form to take some money out now. I’m helping her fill out her paperwork. The insurance company says she has to fill out a W-9 and a W-4R form. She doesn’t know what she should put in section 2 on the W-4R form. Do you happen to know how she should fill that part out? Please provide what advice you may have on this issue, appreciate it 🙏🏽
I wouldn't know what to enter here without knowing her tax bracket. You can probably select 10%, but what I would consider is looking at her current tax picture, which would allow you to select a tax withholding with more precision. Generally, I tell people that you can do this in one of two ways: 1. Use the worksheet located in IRS Form 1040-ES IRS Form 1040-ES, Estimated Tax Voucher Article: www.teachmepersonalfinance.com/irs-form-1040-es-instructions/ Video: ruclips.net/video/MqA_0OX9kxI/видео.html 2. Use the IRS tax estimator tool from the IRS website. How to use the IRS Tax Estimator Tool Video: ruclips.net/video/zXA4ut_OTzU/видео.html Once you determine whether your mother is on track, you can figure out how much tax withholding (in dollars), and convert that number into a percentage on Line 2.
In the video, I made reference to Schedule 1, in passing, when it comes to taxes paid on an eligible rollover distribution. This was made in error. Taxes withheld from a nonperiodic payment are reported at the end of the tax year on IRS Form 1099-R, and should be entered on Line 25b of your Form 1040.
If a person is retired and they are a beneficiary of a non-qualified annuity, and take the lump sum while selecting 0%, Are estimated tax payments required or do they wait to receive the 1099-R form and pay the taxes in full in April?
@@lillithjones993 Generally, taxpayers should expect to make estimated tax payments as they receive income. While there may be specific situations where this is not necessary (i.e. annuity is a relatively small portion of your total income, or you've got significant tax withholdings from other income sources), you should probably look at your tax situation and determine whether or not you need to make estimated tax payments. The IRS has an interactive tax tool that helps determine whether estimated payments are required. Here is a link to a video that walks you through that tax tool (there is a link to the IRS site in the show notes). ruclips.net/video/OSOqhz1AWSc/видео.html
@@teachmepersonalfinance I was asking because I just learned about the estimated payment law a few days ago. I don’t own my own business so that’s not a huge mistake but it could’ve been if someone takes a lump sum and doesn’t pay the taxes quarterly lol I was so glad to find this out! Thank you!
Whose name are we picking up there are we put our name on there or are we from the person's name that actually passed away that we're getting the benefits from?
Okay I have no idea whose name do we put down there do we put our name down there or do we put the person that was passing away that we're getting the benefits from?
You may need to contact your financial institution. If you can perform a trustee-to-trustee transfer, then you should not be subject to withholding. However, if you do a 60-day rollover (meaning you have 60 days to deposit the check that you receive *and the withheld taxes*), then this would be the form you complete. The default rate is 20% for 60 day rollovers, although you can select a higher withholding rate (but not a lower one). The challenge for most taxpayers is coming up with that 20% within the 60 day period, even though you'll eventually get that money back when you file your tax return. For example, a $100,000 rollover would end up with $20,000 withheld in taxes, when you must replace within 60 days to avoid taxes (and any additional taxes that may apply for early withdrawal penalties). IRS Form 5329, Additional Taxes on Qualified Plans and Other Tax-Favored Accounts Article: www.teachmepersonalfinance.com/irs-form-5329-instructions/ Video: ruclips.net/video/Hc6mh1-toUU/видео.html
@@teachmepersonalfinance thanks for your quick response! Its direct from institution to institution, but I did reach out to the current annuity holder to verify. Thanks again!
Small question. I have $15k and I am 100% rolling over my IRA Bank. What do I put 20%? They are sending me the check and I have to bring it to the bank. They do not offer other options.
Unfortunately, this is a federal government requirement. It gets worse. If you do not replace the 20% withholding into your new account, then you'll be charged as if it were a taxable distribution. If you do not meet the age criteria or early withdrawal exception, you'll also be responsible for an early withdrawal penalty. You may be able to avoid this by asking for a trustee-to-trustee transfer from your old account to your new one. This would allow you to avoid tax withholdings.
Since the IRS form instructions don't specify this, I believe you would enter the name of the estate in one of the lines, but I do not believe it matters which line, so long as the name of the estate matches the EIN on record.
I was 2 years short for full pension annuity so I am taking a lump sum of employee contributions ($12k) and I filled out the W4-R. The HR person said I also need to fill out a W4-P for this transaction as well. That does not make sense to me. Can you explain? Thanks in advance
@@snoop2965 I’m not sure why they’re saying this, unless they think you’re still receiving regular pension payments. The form W-4P instructions specifically state to use Form W-4R, not W-4P. You can show the HR person this in the form instructions from the IRS website.
I will be receiving a pension from the same place but different category of job. I have filled out the W-4P for that, but for the lump sum one I filled out the W-4 R . Her written instructions for the lump sum on e was to fill out both. I am so grateful for your answer because I am not that savvy in this area, but it seemed wrong to me to fill out both for the lump sum of employee contribution payments. I can't wait to tell my acturaial brother about your channel. Much thanks!!@@teachmepersonalfinance
If I'm taking a non-periodic distribution from my Roth IRA, what should the witholding tax rate be? I thought the whole point of a Roth IRA was tax-free distributions? So now I'm just confused. On a related note, is this tax amount here distinct from the 10% early withdrawal penalty that someone might be subject to if they take a non-qualifying distribution such as being less than 59.5 years old?
I don't think that you would use this form for tax withholding from a Roth account...double-checking the form instructions, I saw that there was no mention of Roth IRAs. The tax withholding should represent your chosen withholding rate based upon your tax situation. For example, if you were in the 24% tax bracket, then 24% withholding would make sense (or round up to 25%). However, this is different from the 10% early withdrawal penalty, which you would calculate on IRS Form 5329: IRS Form 5329, Additional Taxes on Qualified Plans and Other Tax-Favored Accounts Article: www.teachmepersonalfinance.com/irs-form-5329-instructions/ Video: ruclips.net/video/Hc6mh1-toUU/видео.html
You could probably use 12% withholding for the year and you would be okay. But since this is towards the end of the year, I would double check how much you've paid in taxes to date (vs. what you should have paid to date) by using the IRS online estimator or the worksheet in IRS Form 1040-ES (see resources below). Once you see where you are at that point, you can make adjustments as needed. IRS Form 1040-ES, Estimated Tax Voucher Article: www.teachmepersonalfinance.com/irs-form-1040-es-instructions/ Video: ruclips.net/video/MqA_0OX9kxI/видео.html How to use the IRS Tax Estimator Tool Video: ruclips.net/video/zXA4ut_OTzU/видео.html
Doing a full cash surrender on my disabled brother’s life insurance. He is in need to reduce his life insurance to only $10,000 for him to qualify for Medicaid. Not sure about the amount of tax withholding, 10% or 0%?
I assume that 0% and 10% are the logical options based upon the marginal tax tables on the form. If you have to ask the question (because you're not entirely sure), then I'd go with 10%. It's better to receive a tax refund than a tax surprise when filing his return next year.
So, if I am rolling over one institution traditional IRA to another institution traditional IRA. Are you still even taxed for that or do they only tax you the default 20% tax ( my case would be 25%) if you don’t transfer within 60 days?
If the rollover is a direct rollover between institutions (i.e. you never actually touch the money or receive a check), then there is zero withholding. However, if you receive a check with the intention of performing a 60-day rollover, then the IRS requires the transferring financial institution to withhold 20% as a mandatory withholding. This required withholding may be different from your actual tax liability. For example, if you performed a $50,000 rollover, your 20% withholding would be $10,000. If, at the end of your tax year, you end up squarely in the 24% tax bracket (whether or not you include the rollover in taxable income), then your tax bill on that rollover would be $12,000. Unless you overpaid in taxes elsewhere, you would still owe the IRS $2,000 for the tax liability from that rollover when you file your tax return.
@@jjspleen8611 The withholding should not apply if the check is made out to the new institution. But, since people (not machines) conduct these transactions, mistakes can happen. To avoid unnecessary taxes, I would watch every step of this transaction like a hawk. I did this in my own accounts last year. Although it took longer than I expected, I made sure to stay on top of it in the case anything looked like it was going sideways. Otherwise, any accidental mishaps can end up with you having to prove that you didn't do anything wrong.
@@kevinking7530 The account balance in your 401k doesn't matter as much as your income does, when it comes to selecting a withholding percentage. My recommendation is this: 1. Review last year's tax return. Divide your total tax (Line 24 on your Form 1040) by your taxable income (Line 15). This represents your *marginal tax rate.* If there are not any significant changes to your income from last year, this would be a good place to start, with regards to a withholding percentage. 2. If there were major changes from last year, or if you just want to make sure that you're on track, you can use the worksheet in IRS Form 1040-ES (see links to resources below) to estimate where your income will come out by the end of the tax year. If you need to withhold more, you can divide the amount of tax that you need to pay by the amount of your expected 401k withdrawal, and use that as a withholding percentage. 3. If this is an early withdrawal and you're subject to the 10% penalty, you'll need to account for this as well. You'll use IRS Form 5329 to calculate and report any early withdrawal penalties when filing your tax return next year (see below). IRS Form 1040-ES, Estimated Tax Voucher Article: www.teachmepersonalfinance.com/irs-form-1040-es-instructions/ Video: ruclips.net/video/MqA_0OX9kxI/видео.html IRS Form 5329, Additional Taxes on Qualified Plans and Other Tax-Favored Accounts Article: www.teachmepersonalfinance.com/irs-form-5329-instructions/ Video: ruclips.net/video/Hc6mh1-toUU/видео.html
I am pulling out my 401K early, but I've only been on it for a few years now, and they gave me this form, not sure if how to fill this out, if I have 13k, how much percentage should I put?
It's hard to answer this question with specifics without knowing anything else about your tax situation. Without knowing more, I would recommend that you review last year's tax return and use that as a rough guide for your tax bracket. For example, if you were in the 22% tax bracket last year, you may consider withholding 22% (or maybe a little more, if you felt like you didn't withhold enough last year).
@@teachmepersonalfinance I'm stupid, i didn't realize i put 13k, but I have 2 jobs and I roughly make 64k total for both jobs, do I still mark as 22% or do I only base it on my 1st job income?
@@islndaze I would take a look at last year's tax return to get a rough estimate of what tax bracket you are in. Depending on your situation, 22% might be right, or it might be too much. You can always select 22%, then re-evaluate after a while if you think that you overwithheld.
My current employer if getting rid of the 401k, there are moving my money to a Roth account. I am getting a new employer with a 401k benefit. Should I keep everything as is? Open an Ira account with my bank ? And lastly if I can move money from Roth back to a 401k.
I'm not sure that I understand how your employer is moving your 401k funds to a Roth account, and there are probably more questions that I would want to ask before I made a recommendation. Generally, you might consider asking whether or not there's an option that allows you to keep your money in a pre-tax account so that you don't have to pay unnecessary taxes. But if you're being forced to close out your 401k, then you might consider opening a traditional IRA and transferring your 401k into that. I would not recommend moving money from a Roth IRA to a 401k. I don't really see much benefit in doing that, and many plans wouldn't allow this to happen in the first place.
My mother is deceased and my sister and I are Trustees of her account now. We will be getting a few life insurance distributions that will be going into the Trust. If we fill out the form as the Trust receiving the distribution, should we withhold the taxes and how much?
I'm looking to close down this personal money market IRA I have with my bank and the amount I have in there is not too high. I was told by my bank agent, that a W-4R form needs to be filled before I can withdraw funds out of the account and close it down.
If I put down "0" on line 2, I can simply calculate taxes i potentially owe on this distribution at the end of the year with my tax advisor correct?
One last thing, I'm withdrawing the funds while under 59 1/2 age so i guess I'm also expecting 10% penalty on top of the standard tax deductions correct?
I have an annuity that has come to term and want to cash out. It was originally purchased with post tax dollars for $150,000.00. It is now worth $185,688.00. If I fill-out line 2 requesting a 25% witholding is it based on what I earned ($35,688.00), which is what only should be taxed or the entire amount of $185,688.00
The withholding should only apply to the taxable portion of your annuity. However, your *type of annuity* may play a role in how that works. There are different rules for taxing withdrawals from a qualified annuity vs a nonqualified annuity, so you might want to ask your annuity company how that will work for your situation.
I just came across your channel and subscribed. You break things down nicely and easy to understand, thank you.
So my mom has a life insurance policy and is filling out a Life Partial Surrender form to take some money out now. I’m helping her fill out her paperwork. The insurance company says she has to fill out a W-9 and a W-4R form.
She doesn’t know what she should put in section 2 on the W-4R form.
Do you happen to know how she should fill that part out?
Please provide what advice you may have on this issue, appreciate it 🙏🏽
I wouldn't know what to enter here without knowing her tax bracket. You can probably select 10%, but what I would consider is looking at her current tax picture, which would allow you to select a tax withholding with more precision.
Generally, I tell people that you can do this in one of two ways:
1. Use the worksheet located in IRS Form 1040-ES
IRS Form 1040-ES, Estimated Tax Voucher
Article: www.teachmepersonalfinance.com/irs-form-1040-es-instructions/
Video: ruclips.net/video/MqA_0OX9kxI/видео.html
2. Use the IRS tax estimator tool from the IRS website.
How to use the IRS Tax Estimator Tool
Video: ruclips.net/video/zXA4ut_OTzU/видео.html
Once you determine whether your mother is on track, you can figure out how much tax withholding (in dollars), and convert that number into a percentage on Line 2.
Thanks you appreciate the help, stay blessed 🙏🏽👍🏽
In the video, I made reference to Schedule 1, in passing, when it comes to taxes paid on an eligible rollover distribution. This was made in error. Taxes withheld from a nonperiodic payment are reported at the end of the tax year on IRS Form 1099-R, and should be entered on Line 25b of your Form 1040.
If a person is retired and they are a beneficiary of a non-qualified annuity, and take the lump sum while selecting 0%, Are estimated tax payments required or do they wait to receive the 1099-R form and pay the taxes in full in April?
@@lillithjones993 Generally, taxpayers should expect to make estimated tax payments as they receive income. While there may be specific situations where this is not necessary (i.e. annuity is a relatively small portion of your total income, or you've got significant tax withholdings from other income sources), you should probably look at your tax situation and determine whether or not you need to make estimated tax payments.
The IRS has an interactive tax tool that helps determine whether estimated payments are required. Here is a link to a video that walks you through that tax tool (there is a link to the IRS site in the show notes). ruclips.net/video/OSOqhz1AWSc/видео.html
@@teachmepersonalfinance I was asking because I just learned about the estimated payment law a few days ago. I don’t own my own business so that’s not a huge mistake but it could’ve been if someone takes a lump sum and doesn’t pay the taxes quarterly lol I was so glad to find this out! Thank you!
Whose name are we picking up there are we put our name on there or are we from the person's name that actually passed away that we're getting the benefits from?
Okay I have no idea whose name do we put down there do we put our name down there or do we put the person that was passing away that we're getting the benefits from?
If you're receiving the income, then you would put your name down.
How long will it take for non periodic payment to process to bank account?
I cannot answer that question. You should ask the payer.
I'm rolling an annuity to a traditional IRA, I still fill this out? Thanks!
You may need to contact your financial institution. If you can perform a trustee-to-trustee transfer, then you should not be subject to withholding. However, if you do a 60-day rollover (meaning you have 60 days to deposit the check that you receive *and the withheld taxes*), then this would be the form you complete. The default rate is 20% for 60 day rollovers, although you can select a higher withholding rate (but not a lower one).
The challenge for most taxpayers is coming up with that 20% within the 60 day period, even though you'll eventually get that money back when you file your tax return. For example, a $100,000 rollover would end up with $20,000 withheld in taxes, when you must replace within 60 days to avoid taxes (and any additional taxes that may apply for early withdrawal penalties).
IRS Form 5329, Additional Taxes on Qualified Plans and Other Tax-Favored Accounts
Article: www.teachmepersonalfinance.com/irs-form-5329-instructions/
Video: ruclips.net/video/Hc6mh1-toUU/видео.html
@@teachmepersonalfinance thanks for your quick response! Its direct from institution to institution, but I did reach out to the current annuity holder to verify. Thanks again!
Small question. I have $15k and I am 100% rolling over my IRA Bank.
What do I put 20%? They are sending me the check and I have to bring it to the bank. They do not offer other options.
Unfortunately, this is a federal government requirement. It gets worse. If you do not replace the 20% withholding into your new account, then you'll be charged as if it were a taxable distribution. If you do not meet the age criteria or early withdrawal exception, you'll also be responsible for an early withdrawal penalty.
You may be able to avoid this by asking for a trustee-to-trustee transfer from your old account to your new one. This would allow you to avoid tax withholdings.
I’m completing this form for an estate. Whose name goes in the first middle last? I have an EIN for the estate already.
Since the IRS form instructions don't specify this, I believe you would enter the name of the estate in one of the lines, but I do not believe it matters which line, so long as the name of the estate matches the EIN on record.
I was 2 years short for full pension annuity so I am taking a lump sum of employee contributions ($12k) and I filled out the W4-R. The HR person said I also need to fill out a W4-P for this transaction as well. That does not make sense to me. Can you explain? Thanks in advance
@@snoop2965 I’m not sure why they’re saying this, unless they think you’re still receiving regular pension payments. The form W-4P instructions specifically state to use Form W-4R, not W-4P. You can show the HR person this in the form instructions from the IRS website.
I will be receiving a pension from the same place but different category of job. I have filled out the W-4P for that, but for the lump sum one I filled out the W-4 R . Her written instructions for the lump sum on e was to fill out both. I am so grateful for your answer because I am not that savvy in this area, but it seemed wrong to me to fill out both for the lump sum of employee contribution payments. I can't wait to tell my acturaial brother about your channel. Much thanks!!@@teachmepersonalfinance
If I'm taking a non-periodic distribution from my Roth IRA, what should the witholding tax rate be? I thought the whole point of a Roth IRA was tax-free distributions? So now I'm just confused. On a related note, is this tax amount here distinct from the 10% early withdrawal penalty that someone might be subject to if they take a non-qualifying distribution such as being less than 59.5 years old?
I don't think that you would use this form for tax withholding from a Roth account...double-checking the form instructions, I saw that there was no mention of Roth IRAs.
The tax withholding should represent your chosen withholding rate based upon your tax situation. For example, if you were in the 24% tax bracket, then 24% withholding would make sense (or round up to 25%). However, this is different from the 10% early withdrawal penalty, which you would calculate on IRS Form 5329:
IRS Form 5329, Additional Taxes on Qualified Plans and Other Tax-Favored Accounts
Article: www.teachmepersonalfinance.com/irs-form-5329-instructions/
Video: ruclips.net/video/Hc6mh1-toUU/видео.html
w4r form, what percentage would i use for single 58,000/ would it be 10% or 22 %? and ty for your videos very helpful.
You could probably use 12% withholding for the year and you would be okay. But since this is towards the end of the year, I would double check how much you've paid in taxes to date (vs. what you should have paid to date) by using the IRS online estimator or the worksheet in IRS Form 1040-ES (see resources below). Once you see where you are at that point, you can make adjustments as needed.
IRS Form 1040-ES, Estimated Tax Voucher
Article: www.teachmepersonalfinance.com/irs-form-1040-es-instructions/
Video: ruclips.net/video/MqA_0OX9kxI/видео.html
How to use the IRS Tax Estimator Tool
Video: ruclips.net/video/zXA4ut_OTzU/видео.html
Doing a full cash surrender on my disabled brother’s life insurance. He is in need to reduce his life insurance to only $10,000 for him to qualify for Medicaid. Not sure about the amount of tax withholding, 10% or 0%?
Also he presently in nursing home and need nursing home Medicaid.
I assume that 0% and 10% are the logical options based upon the marginal tax tables on the form. If you have to ask the question (because you're not entirely sure), then I'd go with 10%. It's better to receive a tax refund than a tax surprise when filing his return next year.
So, if I am rolling over one institution traditional IRA to another institution traditional IRA. Are you still even taxed for that or do they only tax you the default 20% tax ( my case would be 25%) if you don’t transfer within 60 days?
If the rollover is a direct rollover between institutions (i.e. you never actually touch the money or receive a check), then there is zero withholding.
However, if you receive a check with the intention of performing a 60-day rollover, then the IRS requires the transferring financial institution to withhold 20% as a mandatory withholding. This required withholding may be different from your actual tax liability.
For example, if you performed a $50,000 rollover, your 20% withholding would be $10,000. If, at the end of your tax year, you end up squarely in the 24% tax bracket (whether or not you include the rollover in taxable income), then your tax bill on that rollover would be $12,000. Unless you overpaid in taxes elsewhere, you would still owe the IRS $2,000 for the tax liability from that rollover when you file your tax return.
@@teachmepersonalfinance thank you! is this the same if I receive a check, but it was made out to the new institution?
@@jjspleen8611 The withholding should not apply if the check is made out to the new institution. But, since people (not machines) conduct these transactions, mistakes can happen.
To avoid unnecessary taxes, I would watch every step of this transaction like a hawk. I did this in my own accounts last year. Although it took longer than I expected, I made sure to stay on top of it in the case anything looked like it was going sideways. Otherwise, any accidental mishaps can end up with you having to prove that you didn't do anything wrong.
Thank you! I will.
I dont have a lot of $ in my 401k how much % to i put in 2
i have under 10,000
@@kevinking7530 The account balance in your 401k doesn't matter as much as your income does, when it comes to selecting a withholding percentage.
My recommendation is this:
1. Review last year's tax return. Divide your total tax (Line 24 on your Form 1040) by your taxable income (Line 15). This represents your *marginal tax rate.* If there are not any significant changes to your income from last year, this would be a good place to start, with regards to a withholding percentage.
2. If there were major changes from last year, or if you just want to make sure that you're on track, you can use the worksheet in IRS Form 1040-ES (see links to resources below) to estimate where your income will come out by the end of the tax year. If you need to withhold more, you can divide the amount of tax that you need to pay by the amount of your expected 401k withdrawal, and use that as a withholding percentage.
3. If this is an early withdrawal and you're subject to the 10% penalty, you'll need to account for this as well. You'll use IRS Form 5329 to calculate and report any early withdrawal penalties when filing your tax return next year (see below).
IRS Form 1040-ES, Estimated Tax Voucher
Article: www.teachmepersonalfinance.com/irs-form-1040-es-instructions/
Video: ruclips.net/video/MqA_0OX9kxI/видео.html
IRS Form 5329, Additional Taxes on Qualified Plans and Other Tax-Favored Accounts
Article: www.teachmepersonalfinance.com/irs-form-5329-instructions/
Video: ruclips.net/video/Hc6mh1-toUU/видео.html
I am pulling out my 401K early, but I've only been on it for a few years now, and they gave me this form, not sure if how to fill this out, if I have 13k, how much percentage should I put?
It's hard to answer this question with specifics without knowing anything else about your tax situation. Without knowing more, I would recommend that you review last year's tax return and use that as a rough guide for your tax bracket.
For example, if you were in the 22% tax bracket last year, you may consider withholding 22% (or maybe a little more, if you felt like you didn't withhold enough last year).
@@teachmepersonalfinance I'm stupid, i didn't realize i put 13k, but I have 2 jobs and I roughly make 64k total for both jobs, do I still mark as 22% or do I only base it on my 1st job income?
@@islndaze I would take a look at last year's tax return to get a rough estimate of what tax bracket you are in. Depending on your situation, 22% might be right, or it might be too much.
You can always select 22%, then re-evaluate after a while if you think that you overwithheld.
My current employer if getting rid of the 401k, there are moving my money to a Roth account. I am getting a new employer with a 401k benefit.
Should I keep everything as is? Open an Ira account with my bank ? And lastly if I can move money from Roth back to a 401k.
Is the form w-4r need to be completed when moving from 401k to traditional Ira
Also keep in mind the amount is less than 1800.00
I'm not sure that I understand how your employer is moving your 401k funds to a Roth account, and there are probably more questions that I would want to ask before I made a recommendation.
Generally, you might consider asking whether or not there's an option that allows you to keep your money in a pre-tax account so that you don't have to pay unnecessary taxes. But if you're being forced to close out your 401k, then you might consider opening a traditional IRA and transferring your 401k into that.
I would not recommend moving money from a Roth IRA to a 401k. I don't really see much benefit in doing that, and many plans wouldn't allow this to happen in the first place.