I had yet another "old man moment". I've changed jobs many times (healthcare don't judge) my 401k/403b moneys are now an amount where when you try to leave, they call you with options.

What is the benefit to a "rollover Roth"? I feel it's only benefit is that they keep my money longer in another fund. It gets taxed, penalized, or both? It will be a seperate deduction I have to make effort to make. It won't happen.

They also have a "Defined Contribution Fund". Sounds like a pension. But the contribution is not "defined"? An idea of what is defined can adjust what I deduct for the 403b? Again this is healthcare, so I don't expect big money.

Just curious. My thoughts are to just ALWAYS rollover my funds into one account that is with my current employer so I am always putting into building funds. Any holes in that logic?

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Posted by Broke

AKA Buttercup

Member since Sep 2006

65042 posts

Posted on 6/16/15 at 11:55 am to LSU alum wannabe

The Roth rollover will cost you taxes. Whatever your tax rate is. I always recommend taking control of your retirement assets whenever you can. That means NEVER rolling into the new company plan that has very few options.

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Posted by gpburdell

ATL

Member since Jun 2015

1419 posts

Posted on 6/17/15 at 11:33 pm to LSU alum wannabe

quote:
My thoughts are to just ALWAYS rollover my funds into one account that is with my current employer so I am always putting into building funds. Any holes in that logic?

It depends on the investment choices available at your new employer. If they are diverse and low cost then it's fine to keep it all at your new company.

However, my preference would be to rollover the 401k to a personal ira account (non roth). That way you will have more options and control over your investments. The only downside to this is if you need to do back door roth in the future.

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