Submitted by bulls2030 t3_yhuvt4 in personalfinance
bulls2030 OP t1_iufttvv wrote
Reply to comment by ThunderDrop in Question about 401k rollover to IRA and checks received by bulls2030
Yes they did have contribution matching. Oh i see. I didn't know that. So would it make sense to rollover the pretax contributions to my Roth IRA or open a Traditional one?
ThunderDrop t1_iufutzw wrote
That really depends on two things.
If you would rather pay income tax on those employer contributions this year or in some future year. Basically if you think you will be in a lower tax bracket now or later.
And if you think your income will ever be large enough that you will no longer be able to directly contribute to a Roth IRA and will want to use the "backdoor" method. (currently $140kish for single and $220kish for married) if you think you will use the backdoor someday, the existence of an old traditional IRA complicates things.
DeluxeXL t1_iufu2nh wrote
If you are in 22% or higher tax bracket, you should roll over traditional 401k to traditional IRA or traditional 401k at your new job.
manwnomelanin t1_iuga29y wrote
OP, i just did this and i just decided to make it easy and put it into a traditional IRA.
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