Re: 401K rollover to IRA

[djohnflatfeecfp]

Aj wrote:

Apparently one cannot move the funds from the IRA rollover to another 401K….. that is what our advisor told us.  Am trying to confirm that….

 

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Peds is correct you should be able to roll it her new job, assuming she is working, if they accept it.  Are you paying that advisor based on assets under management (AUM) model?

[cgossage]

Your advisor doesn’t know what they are talking about and I would look for a new advisor. Many 401k’s accept rollovers and if your wife’s new job does that will be your best bet.

Don’t take my word for it:
https://www.irs.gov/pub/irs-tege/rollover_chart.pdf

[Peds]

If the 401k accepts it, you can move it. Or need 1099 income and you can open a solo 401k to move it.

[Aj]

Apparently one cannot move the funds from the IRA rollover to another 401K..... that is what our advisor told us.  Am trying to confirm that....

 

[Aj]

My wife had a 401K at a previous employer worth ~$20,000.  She'd left the job many years ago; as the business was closing, I moved it to a Vanguard IRA rollover.  However, we will not be able to contribute to her ROTH IRA for the coming year unless we pay the taxes.  She is 52yo.

Question:  Do we just suck it up and pay the taxes so that we can continue to fund her (backdoor) ROTH IRA or do we no longer fund the Roth and just fuel our taxable account?  (We usually maximize all our pre-tax options and our Roth IRAs).

Thanks.