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Dumb question on rolling over an old 401a

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  • Dumb question on rolling over an old 401a

    I apologize for the simplicity of this question - it's the first time I've done this and just want a quick sanity check.

    I have a 401a from a old job. I have separated from that employer. For simplicity, I'd like to consolidate retirement accounts. Can I roll this into my Vanguard IRA, then do a Roth conversion (to avoid having anything in my IRA so I can also - hopefully - do backdoor Roth in 2022)? I understand I'd owe tax on this conversion, but it would be at the 24% marginal rate, I anticipate being in the 32 or 35% marginal bracket in the future, and my other pre-tax accounts are ~2x the value of my Roth accounts. Seems like a logical time to do the conversion, but just want to make sure I haven't missed any details...

  • #2
    Can you roll it over into your current retirement plan assuming you have one?

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    • #3
      Don’t forget you’ll pay state tax too

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      • #4
        Originally posted by GasFIRE View Post
        Can you roll it over into your current retirement plan assuming you have one?
        Yes, good point - I have a 401k with current employer that accepts rollovers, although the fees are higher, which would seem to favor either leaving it alone or rolling to an IRA and doing a Roth conversion.

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        • #5
          There is no requirement to first rollover to a traditional IRA. You can rollover the 401a pre-tax directly to a Roth IRA. It will be considered a taxable rollover.

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