Option 1 (leave in 410k) pro not mentioned: Those funds are protected from creditors should you be sued in most cases. IRAs are not. I have found this rarely mentioned in pro and con discussions.
At age 55 my 401k allowed a 10% in service rollover. At 59.5 I was allowed to move 90% from my 401k to an IRA. Better investment choices at lower costs. I never looked back. I plan to convert my pre tax 401k money over to the Roth side of my 401k just before I retire in less than two years.
I agree I recently rolled over my 401k from a previous emplyer the account was with Fidelity...the fees was outrageous....its in Vanguard and doing better...lower fees and more options to invest in. I am currently working on doing small ira conversions into my roth ira with this money.
Like we don't give enough through payroll taxes, annual taxes and everything else. Retirement is not an option for the middle class. Money is a living hell.
Cons of IRA rollover: it kills the ability to do tax free back door Roth conversions ($8k/yr depending on age ). Search for “reverse rollovers for backdoor roth” in case you already rolled over. The reason is that aftertax IRA to roth IRA is only taxed on the gains unless you also have a pretax IRA (for example from a 401k rollover!). With the extra rollover ira, the roth conversion is taxed on the amount converted (not just gains) proportional to the pretax IRA.
My cost are $385 a year, and getting lower ( i believe) in the current year, in my 401k. Withdrawals are not a problem ( USW) . not sure i will leave the money there, but it looks fair so far.
My 401k is a 403b that has been sitting in place with no more gaining interest and want to rollover to an IRA. I am 57. Or should i switch it to Roth IRA and eat up the taxes and penalty??
My mom is 71 and she has 5,000 of 401k. She doesn't want to use it because she doesn't want to lose medicare A-B beucase both are sick. They also get Stamps . They need to use that money to fix their house and to get an electric scooter. can they use that money without losing everything they are getting ?
We had 3 401k’s. All the plans required you to pick a fund.Means all in the stock market . Found this out when the markets were sinking and we wanted safety in tbills.Rolled them over to Etrade. Put it all in tbills. While the market is down , I’m up 50k ina year just in interest.
@@WallaceDunn I’m pretty wealthy. Really don’t care what the markets do So I’m in Tbills now and looking at about 160k in interest.You get to a point where you have enough that you can’t spend it all.Rather be safe than sorry.Still have plenty in stocks.
I'm 65 years old now but I can't get social security money until 67 years. I have to pay 175 dollars every month for Medicare my self insurance that is very unfair and I have 401 k when I can get that money. Can I withdraw all the money from my savings (401k)
From what I understand if you draw all your money out from your 401k you are going to take a financial penalty hit for that. Also you can collect your SS just at a lower monthly rate then if you would wait
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Option 1 (leave in 410k) pro not mentioned: Those funds are protected from creditors should you be sued in most cases. IRAs are not. I have found this rarely mentioned in pro and con discussions.
O.J. Simpson taught us this.
At age 55 my 401k allowed a 10% in service rollover. At 59.5 I was allowed to move 90% from my 401k to an IRA. Better investment choices at lower costs. I never looked back. I plan to convert my pre tax 401k money over to the Roth side of my 401k just before I retire in less than two years.
I am strategically allocating my financial transactions across multiple years in order to optimize tax planning.
@ChloeBensonBeautyBoxes that's what I need to now more. But I still have a lot of time... about 15 years from retirement.
I agree I recently rolled over my 401k from a previous emplyer the account was with Fidelity...the fees was outrageous....its in Vanguard and doing better...lower fees and more options to invest in. I am currently working on doing small ira conversions into my roth ira with this money.
Like we don't give enough through payroll taxes, annual taxes and everything else. Retirement is not an option for the middle class. Money is a living hell.
Very good information. Thank you
Spend it and enjoy the rest of your short life
Cons of IRA rollover: it kills the ability to do tax free back door Roth conversions ($8k/yr depending on age ). Search for “reverse rollovers for backdoor roth” in case you already rolled over. The reason is that aftertax IRA to roth IRA is only taxed on the gains unless you also have a pretax IRA (for example from a 401k rollover!). With the extra rollover ira, the roth conversion is taxed on the amount converted (not just gains) proportional to the pretax IRA.
My employer will not allow to keep 401k with the company, must move it
My cost are $385 a year, and getting lower ( i believe) in the current year, in my 401k. Withdrawals are not a problem ( USW) . not sure i will leave the money there, but it looks fair so far.
If I withdraw from my 401(k) Roth, I can benefit from a tax break at age 60.
My 401k is a 403b that has been sitting in place with no more gaining interest and want to rollover to an IRA. I am 57. Or should i switch it to Roth IRA and eat up the taxes and penalty??
My mom is 71 and she has 5,000 of 401k. She doesn't want to use it because she doesn't want to lose medicare A-B beucase both are sick. They also get Stamps . They need to use that money to fix their house and to get an electric scooter. can they use that money without losing everything they are getting ?
Pls its so annoying to person asking whatvto do with their money hey thats your money go enjoy it dobt be stupid asking people fir what
We had 3 401k’s. All the plans required you to pick a fund.Means all in the stock market . Found this out when the markets were sinking and we wanted safety in tbills.Rolled them over to Etrade. Put it all in tbills. While the market is down , I’m up 50k ina year just in interest.
The market is at an all-time high, how's that working out for you now?
@@WallaceDunn I’m pretty wealthy. Really don’t care what the markets do
So I’m in Tbills now and looking at about 160k in interest.You get to a point where you have enough that you can’t spend it all.Rather be safe than sorry.Still have plenty in stocks.
And if I take out my 401(k) Roth, I have a text break at age 60
Can I take out a portion for a down payment on a car at age 60?
Pay cash for your car . New or used pay 100 percent of what it takes to pay it off at time of purchases.
😂😂😂
How about 457 plan
I'm 65 years old now but I can't get social security money until 67 years. I have to pay 175 dollars every month for Medicare my self insurance that is very unfair and I have 401 k when I can get that money. Can I withdraw all the money from my savings (401k)
Why can't you get social security when everyone is eligible at age 62 albeit at a reduced rate in comparison to what you'd get at age 67?
From what I understand if you draw all your money out from your 401k you are going to take a financial penalty hit for that. Also you can collect your SS just at a lower monthly rate then if you would wait