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changing jobs and thinking of converting my 401K to Roth IRA

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  • changing jobs and thinking of converting my 401K to Roth IRA

    I'm changing job.
    After 3 years, my current retirement account worth $350,000 invested with Fidelity with very poor options (actually, we had amazing options that have been suspended and only garbage and age targeted funds are left behind).

    Any advice on what to do as I leave my employer? Do I keep the account as is or do I convert it to a Roth IRA and pay the taxes?

  • #2
    Likely roll it over to the 401k at your new employer. I doubt you want to convert that at your marginal tax rate

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    • #3
      Originally posted by chrisg202 View Post
      I'm changing job.
      After 3 years, my current retirement account worth $350,000 invested with Fidelity with very poor options (actually, we had amazing options that have been suspended and only garbage and age targeted funds are left behind).

      Any advice on what to do as I leave my employer? Do I keep the account as is or do I convert it to a Roth IRA and pay the taxes?
      Current plan, are these the plan options and do you have access to brokerlink?
      The might open up your investment options if you can use the brokerlink.

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      • #4
        Hard to answer without a solid tax projection and understanding of your goals and financial situation. Is having a large Roth balance a goal? Do you have the money to pay taxes? Will this be a lower-than-normal income tax year? Does your new plan allow rollovers from other plans? How long until you qualify to participate? Etc.

        Of course, you can convert a part and roll over a part to your new plan (if allowed). Or you can move to a TIRA and convert to Roth over a period of years as optimal for your tax bracket (pending tax legislation, of course). This is not a binary choice, iow.

        The fact that you may leave the money in TDFs for a couple of years is inconsequential in the long run.
        Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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        • #5
          Originally posted by jfoxcpacfp View Post
          Hard to answer without a solid tax projection and understanding of your goals and financial situation. Is having a large Roth balance a goal? Do you have the money to pay taxes? Will this be a lower-than-normal income tax year? Does your new plan allow rollovers from other plans? How long until you qualify to participate? Etc.

          Of course, you can convert a part and roll over a part to your new plan (if allowed). Or you can move to a TIRA and convert to Roth over a period of years as optimal for your tax bracket (pending tax legislation, of course). This is not a binary choice, iow.

          The fact that you may leave the money in TDFs for a couple of years is inconsequential in the long run.
          thank you
          these questions are helpful!

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