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Message
Need Advice - 401K
Posted on 1/13/21 at 9:03 am
Posted on 1/13/21 at 9:03 am
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.
Just need some advice on what to do with that money.
5
Posted on 1/13/21 at 9:12 am to lovethetigers7
That sounds like a rollover scenario. You should be able to make that transfer.
Who has done this? Can anyone help?
Who has done this? Can anyone help?
Posted on 1/13/21 at 9:22 am to lovethetigers7
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?
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?
Posted on 1/13/21 at 9:32 am to lovethetigers7
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
Posted on 1/13/21 at 9:56 am to lovethetigers7
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.
Posted on 1/13/21 at 11:29 am to PennyPacker
Located in Texas
Posted on 1/13/21 at 1:28 pm to lovethetigers7
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.
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.
Posted on 1/13/21 at 7:37 pm to DFWAggie09
Don't fees go up on that 401k if you aren't still with the employer?
Posted on 1/14/21 at 11:00 pm to DFWAggie09
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
Posted on 1/15/21 at 8:16 am to The Easter Bunny
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..
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..
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