Great points Rob but, my wife has 3 different 403b her hospital merged 3 times in 14 years. These corp hospitals a nightmare to find out who will sign off the rollover. It could take weeks sitting on the wrong person desk. I was leaning to exchanging to cash stable value if market tanks before the rollover.
Mentioning the difference between a direct or indirect rollover would be helpful. Also you do not need to sell stock as you can in kind transfer these if preferred.
i am a bit confused on this one. I am planning to start doing some roth conversions when i retire next year. (From TSP deferred to a Fidelity IRA- then pay taxes and to my Roth IRA). Can't I do that directly to the regular IRA. Is that a bad idea? TSP is a bit of a beast when it comes to transfers in and out. They warn about 10 to 20 or more days just to process.
@Rob Berger. New subscriber here. What do you recommend should be my allocation for my 401k? I’m 54 and I’m putting my over $200k on Large Cap at 80%, Middle Cap and Small Cap at 10% each. Any suggestions are greatly appreciated. Thanks
I like this guy but don’t go to him for what to buy. Listen to Warren Buffett or John Bogle, Diversified low cost index funds. If that is what you own in Large, Mid, and Small Cap, then you did the right thing.
Hi Rob,How is the case if employer's 401k is having both pretax and post tax contribution. Does rollover IRA accommodate both or we need both type of IRA accounts (rollover IRA + roth IRA for post tax).
You'll need two IRAs. Pre-tax goes to a Traditional IRA and post-tax goes to a Roth IRA. Rollover is really a designation, not a separate account type.
Hi Rob, thanks for the thoughtful videos, I'm a hooked viewer. Is there any way to roll over a 401k from a former employer (held at Fidelity) to my Vanguard Rollover IRA without first liquidating the positions held at Fidelity account? I don't like the idea of losing exposure to the market. From the video it sounded as if that's not the case, but thought to check in with you to confirm. I might just keep the money with Fidelity if I have to liquidate it. Thanks!
Is another benefit of using a rollover ira instead of traditional that it allows you to do backdoor roth? Think I heard bd roth wasn't possible if you have a traditional ira.
The IRS looks at all your Traditional IRAs as one big bucket, regardless if any of them are rollovers. You can still do backdoor Roth conversions with pretax money in Traditional IRAs, but it gets messy since they pro-rate the taxable portion. It's much cleaner to not mix pre-tax and post-tax money when doing Roth conversions.
Hey rob where are you doing now before 401k to your Roth IRA at betterment. Do you need to put in a new account or can you put it into an existing Roth account
It depends on when you opened the Roth IRA. If the Roth IRA has been open for at least 5 years (and you're 59.5), then you can withdraw the money as soon as you roll it into the Roth IRA.
Hi Rob. Love the videos. Problem. Switching jobs BUT I have an outstanding 401K loan that I can't afford to pay off at the moment. Going to a much better job. How do I get situated with my new job and NOT suffer a taxable event. Also-I want to create my first ROTH IRA and put at least 14,000 in it from my 401K. Any thoughts? Thank you!
Excellent information.
This was helpful. Thank you.
Thank you this step by step review. Would there be fees from the funds for liquidating while in this process?
Great points Rob but, my wife has 3 different 403b her hospital merged 3 times in 14 years. These corp hospitals a nightmare to find out who will sign off the rollover. It could take weeks sitting on the wrong person desk. I was leaning to exchanging to cash stable value if market tanks before the rollover.
Thank you, Rob. I'm assuming the process would be similar for a 403(b)
Mentioning the difference between a direct or indirect rollover would be helpful. Also you do not need to sell stock as you can in kind transfer these if preferred.
What about 457b or 401a plans, would those follow the same step and put into a rollover IRA
i am a bit confused on this one. I am planning to start doing some roth conversions when i retire next year. (From TSP deferred to a Fidelity IRA- then pay taxes and to my Roth IRA). Can't I do that directly to the regular IRA. Is that a bad idea? TSP is a bit of a beast when it comes to transfers in and out. They warn about 10 to 20 or more days just to process.
Who’s the right persons thta can help to do this ??
do Merill Edge have a rollover ira? i tried to rollover my 401k . i was told to do a traditional ira.
@Rob Berger. New subscriber here. What do you recommend should be my allocation for my 401k? I’m 54 and I’m putting my over $200k on Large Cap at 80%, Middle Cap and Small Cap at 10% each. Any suggestions are greatly appreciated. Thanks
I like this guy but don’t go to him for what to buy. Listen to Warren Buffett or John Bogle, Diversified low cost index funds. If that is what you own in Large, Mid, and Small Cap, then you did the right thing.
why leave Fidelity? you didn't go into that. thanks
Hi Rob,How is the case if employer's 401k is having both pretax and post tax contribution. Does rollover IRA accommodate both or we need both type of IRA accounts (rollover IRA + roth IRA for post tax).
You'll need two IRAs. Pre-tax goes to a Traditional IRA and post-tax goes to a Roth IRA. Rollover is really a designation, not a separate account type.
Hi Rob, thanks for the thoughtful videos, I'm a hooked viewer. Is there any way to roll over a 401k from a former employer (held at Fidelity) to my Vanguard Rollover IRA without first liquidating the positions held at Fidelity account? I don't like the idea of losing exposure to the market. From the video it sounded as if that's not the case, but thought to check in with you to confirm. I might just keep the money with Fidelity if I have to liquidate it. Thanks!
You can only transfer stock as in kind in a rollover. All funds must be sold
contemplating doing this (401k to IRA to ROTH)
Don't think that's possible. Pretty sure you'll have to do a Roth conversion later.
Hi I am 65 and half still working full time I have some 401k at my work shout I leave there for a little while or should I roll over IRA thank
Is another benefit of using a rollover ira instead of traditional that it allows you to do backdoor roth? Think I heard bd roth wasn't possible if you have a traditional ira.
Right. Technically it's possible, but would trigger some amount of taxes depending on how much you had in a traditional IRA.
The IRS looks at all your Traditional IRAs as one big bucket, regardless if any of them are rollovers. You can still do backdoor Roth conversions with pretax money in Traditional IRAs, but it gets messy since they pro-rate the taxable portion. It's much cleaner to not mix pre-tax and post-tax money when doing Roth conversions.
Hey rob where are you doing now before 401k to your Roth IRA at betterment. Do you need to put in a new account or can you put it into an existing Roth account
Sorry I mean when I roll over the 401k account
When I roll over the 401k account
If I roll over a Roth 401 k to a Roth IRA and after age 59 1/2, do I have to wait 5 years for tax free distributions? Thanks
It depends on when you opened the Roth IRA. If the Roth IRA has been open for at least 5 years (and you're 59.5), then you can withdraw the money as soon as you roll it into the Roth IRA.
Hi Rob. Love the videos. Problem. Switching jobs BUT I have an outstanding 401K loan that I can't afford to pay off at the moment. Going to a much better job. How do I get situated with my new job and NOT suffer a taxable event. Also-I want to create my first ROTH IRA and put at least 14,000 in it from my 401K. Any thoughts? Thank you!