Submitted by bulls2030 t3_yhuvt4 in personalfinance
DeluxeXL t1_iuft2wz wrote
Pretax 401k and Roth 401k are two separate subaccounts in your overall 401k plan account.
- You must roll over the Roth 401k to Roth IRA or the Roth 401k at your new job. Roth cannot be rolled over to traditional.
- You should roll over the pretax 401k to your traditional IRA or the pretax 401k at your new job.
bulls2030 OP t1_iuft963 wrote
I have a ROTH IRA account I was planning to rollover to. Is that okay?
DeluxeXL t1_iuftele wrote
> I have a ROTH IRA account I was planning to rollover to. Is that okay?
Yes.
- Roth 401k --> Roth IRA: No tax.
- Traditional 401k --> Roth IRA: Amount rolled over is ordinary income in the calendar year of rollover.
Church42 t1_iuftz3p wrote
Traditional 401k should be put into a rollover (aka traditional) IRA. Otherwise OP will have to pay taxes
debbiewith2 t1_iugbb4u wrote
Over it’s in the traditional, OP can make decisions about how much, if any, to convert each year. Don’t forget to invest in each, OP.
slayerdork t1_iuftfuk wrote
It is okay but you will pay taxes on the pre-tax amount you roll over.
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