Hello,
I have approximately 10k in a 403b from residency, of which all 10k is a roth contribution. I graduated residency in 2020 and started my first job July 2020, and as such I'm not eligible for the 401k here yet. I also have a roth IRA with approximately 20k. From what I've read, it's generally better to roll your roth 403b into your roth IRA when leaving your employer so you can take advantage of better access to cheap index funds, and simplify your portfolio to keep it in fewer places, with the disadvantage being possibly less asset protection in a roth IRA; however, in my state, a roth IRA is protected in bankruptcy up to 1 mil, so I am comfortable with slightly less asset protection to simplify my finances, especially given my meager sums in my accounts.
Is it as easy as going into my roth IRA and clicking on transfer funds and transferring from my 403b? I've read that when you do this, you have to pay taxes on the conversion, but by tax bill should be 0 because all my contributions were roth, correct?
I've also read that when you transfer funds into your roth IRA like this, it counts towards your $6000 contribution for the year. Is this true? I currently fund my roth IRA through a backdoor contribution, and I wouldn't want my rollover from my 403b to count towards this because then it would take 2 years to get it rolled over and I'd miss out on backdoor contributions for those years.
Another thought I had is should I just hold out until I'm eligible for my 401k at my current job and then rollover my 403b into that? But would that then complicate my 401k because I'd have 10k in roth contributions and the new funds when then be tax deductible contributions? And would a rollover there count towards the $19500 contribution limit for the year?
I appreciate your help and advice!
I have approximately 10k in a 403b from residency, of which all 10k is a roth contribution. I graduated residency in 2020 and started my first job July 2020, and as such I'm not eligible for the 401k here yet. I also have a roth IRA with approximately 20k. From what I've read, it's generally better to roll your roth 403b into your roth IRA when leaving your employer so you can take advantage of better access to cheap index funds, and simplify your portfolio to keep it in fewer places, with the disadvantage being possibly less asset protection in a roth IRA; however, in my state, a roth IRA is protected in bankruptcy up to 1 mil, so I am comfortable with slightly less asset protection to simplify my finances, especially given my meager sums in my accounts.
Is it as easy as going into my roth IRA and clicking on transfer funds and transferring from my 403b? I've read that when you do this, you have to pay taxes on the conversion, but by tax bill should be 0 because all my contributions were roth, correct?
I've also read that when you transfer funds into your roth IRA like this, it counts towards your $6000 contribution for the year. Is this true? I currently fund my roth IRA through a backdoor contribution, and I wouldn't want my rollover from my 403b to count towards this because then it would take 2 years to get it rolled over and I'd miss out on backdoor contributions for those years.
Another thought I had is should I just hold out until I'm eligible for my 401k at my current job and then rollover my 403b into that? But would that then complicate my 401k because I'd have 10k in roth contributions and the new funds when then be tax deductible contributions? And would a rollover there count towards the $19500 contribution limit for the year?
I appreciate your help and advice!
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