Posted by
Message
lovethetigers7
LSU Fan
Member since Jul 2019
430 posts

Need Advice - 401K
I worked in the construction industry for 4 years but recently became a teacher/coach. I accumulated $12,707 from my construction 401K and I want to roll that over into another account since my teacher retirement is completely different. I was told to throw it in a Roth IRA but it looks like I’m not supposed to put in over $6,000 in a year?

Just need some advice on what to do with that money.


bayoubengals88
Wisconsin Fan
LA
Member since Sep 2007
14919 posts

re: Need Advice - 401K
That sounds like a rollover scenario. You should be able to make that transfer.

Who has done this? Can anyone help?



Replies (0)
Replies (0)
00
PennyPacker
LSU Fan
Where things are bigger and better
Member since Jan 2010
851 posts

re: Need Advice - 401K
Unless your 401K was a Roth 401K then rolling into a Roth IRA you will have tax consequences (providing it can be done at this time). A Roth is a retirement account using after tax dollars, so you pay taxes now but don't pay taxes when you remove it. Yes, there are contribution limitations... you need to pick an investment broker and develop a relationship.

Honestly, I would roll the 401K into a traditional IRA and also start a Roth IRA if you can afford both along with your current teacher retirement.

What state are you located in?


The Easter Bunny
Georgia Tech Fan
Minneapolis
Member since Jan 2005
44781 posts

re: Need Advice - 401K
the 6k limit is for annual contributions, not your rollover. You can rollover the full amount. If you call Vanguard (or the financial institute of your choosing) they will walk you through it


Replies (0)
Replies (0)
50
jfw3535
Bradley Fan
South of Bunkie
Member since Mar 2008
1130 posts

re: Need Advice - 401K
You can roll it over into a rollover 401k. You can then covert that into a roth (without the annual limit), but you have to pay income tax this year on the amount that you roll over. We did this a while back with my wife's rollover and did it in stages over several years so as to spread out the tax hit.


Replies (0)
Replies (0)
31
TD SponsorTD Fan
USA
Member since 2001
Thank you for supporting our sponsors
Advertisement
lovethetigers7
LSU Fan
Member since Jul 2019
430 posts

re: Need Advice - 401K
Located in Texas


Replies (0)
Replies (0)
00
DFWAggie09
Texas A&M Fan
DFW
Member since Oct 2011
1300 posts

re: Need Advice - 401K
I don't mean to thread hijack here but I'm looking for some advice along similar lines. I have an old Fidelity 401K with a previous employer that I haven't touched in 7-8 years as it's been growing quite nicely even without any further contributions.

I'm debating whether it is more beneficial to me to roll this into either traditional or Roth IRA or just let it continue to ride in the 401K account. It's been surging on stocks but who knows.

~$20K in Fidelity 401K account, blended stock, 27.34% return last year. I'm not retiring for another 25-30 years.

Anyone smarter than me have any advice or recommendations? I lean towards just letting it sit for now.



GrizzlyAlloy
Liberty Fan
Member since Aug 2020
157 posts

re: Need Advice - 401K
Don't fees go up on that 401k if you aren't still with the employer?


Replies (0)
Replies (0)
00
The Easter Bunny
Georgia Tech Fan
Minneapolis
Member since Jan 2005
44781 posts

re: Need Advice - 401K
quote:

I'm debating whether it is more beneficial to me to roll this into either traditional or Roth IRA or just let it continue to ride in the 401K account. It's been surging on stocks but who knows.

~$20K in Fidelity 401K account, blended stock, 27.34% return last year. I'm not retiring for another 25-30 years.

Anyone smarter than me have any advice or recommendations? I lean towards just letting it sit for now.


Generally you can invest in funds with lower fees in a self-managed IRA than a company 401(k), though this certainly isn’t always the case. Moving it to a place like Vanguard won’t prohibit you from investing in the same mix of stocks, you just will have more options and potentially pay less fees.

You should look at what you paid in fees last year, as well as any potential management costs


tigers1956
LSU Fan
baton rouge
Member since Oct 2008
3687 posts

re: Need Advice - 401K
I had three different 401 plans
Chase....was only ok
Invesco....would not use
Fidelity...was great
I would use either fidelity or wanguard...I'm no financial genius but they are both great companies and very helpful to the average investor..


Replies (0)
Replies (0)
00
first pageprev pagePage 1 of 1next pagelast page
refresh

Back to top

logoFollow TigerDroppings for LSU Football News
Follow us on Twitter, Facebook and Instagram to get the latest updates on LSU Football and Recruiting.

FacebookTwitterInstagram