My 401k is with Vanguard. Some of it is pretax and some of it is in a Roth Basic. Do you know if I can roll over the roth basic portion to my Roth IRA? Will there be any consequences? I’ll be changing jobs in about a month. My new employer uses Fidelity for their 401k.
Typically not while you’re still employed. Once you leave your job you can roll that over but you have to remember that you’ll pay income tax on the traditional to Roth conversion that year. Roth to Roth you don’t pay any taxes, but if you move it to your Roth IRA, you can’t move it back to your Roth 401k or 401k-type plan. If you move your money out of your 401k to an IRA, you lose the Rule of 55
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I am 47 and have "a lot" in my 401k. It's amazing to see that the Fidelity sources data shows 20% of my 401k value is from my employer....FREE money.
You had me at FREE
Do you do financial consultation/advising?
My 401k is with Vanguard. Some of it is pretax and some of it is in a Roth Basic. Do you know if I can roll over the roth basic portion to my Roth IRA? Will there be any consequences? I’ll be changing jobs in about a month. My new employer uses Fidelity for their 401k.
Typically not while you’re still employed. Once you leave your job you can roll that over but you have to remember that you’ll pay income tax on the traditional to Roth conversion that year. Roth to Roth you don’t pay any taxes, but if you move it to your Roth IRA, you can’t move it back to your Roth 401k or 401k-type plan. If you move your money out of your 401k to an IRA, you lose the Rule of 55
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