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Changing 401k Provider without Losing Backdoor Roth Option

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  • Changing 401k Provider without Losing Backdoor Roth Option

    My wife recently "retired" from her old job and doesn't plan on finding a new one any time soon (or ever). Her 401k provider plan was quite bad and I'd like to roll it over one of the investment houses (Vanguard, Fidelity, etc) that have more fund options and lower expenses. Neither of us currently have a traditional IRA, but both have been fully funding Roths since I was in medical school. My understanding is that if she rolls her 401k over into a traditional IRA, it will hamper our ability to do a backdoor Roth contribution now that I'm earning more than the Roth IRA income limit.

     

    Is there a way to switch 401k providers without her starting a new job? And if not, how exactly will rolling over her 401k into an IRA hamper our ability to fund a backdoor Roth? Thanks.

  • #2
    She needs self-employment income, even a little, and an employer identification number. Then can open an individual 401(k), roll this in there, and still do backdoor Roths.
    Helping those who wear the white coat get a fair shake on Wall Street since 2011

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    • #3




      She needs self-employment income, even a little, and an employer identification number. Then can open an individual 401(k), roll this in there, and still do backdoor Roths.
      Click to expand...


      Thanks Jim!

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