Option 1 (leave in 410k) pro not mentioned: Those funds are protected from creditors should you be sued in most cases. IRAs are not. I have found this rarely mentioned in pro and con discussions.
At age 55 my 401k allowed a 10% in service rollover. At 59.5 I was allowed to move 90% from my 401k to an IRA. Better investment choices at lower costs. I never looked back. I plan to convert my pre tax 401k money over to the Roth side of my 401k just before I retire in less than two years.
I agree I recently rolled over my 401k from a previous emplyer the account was with Fidelity...the fees was outrageous....its in Vanguard and doing better...lower fees and more options to invest in. I am currently working on doing small ira conversions into my roth ira with this money.
Cons of IRA rollover: it kills the ability to do tax free back door Roth conversions ($8k/yr depending on age ). Search for “reverse rollovers for backdoor roth” in case you already rolled over. The reason is that aftertax IRA to roth IRA is only taxed on the gains unless you also have a pretax IRA (for example from a 401k rollover!). With the extra rollover ira, the roth conversion is taxed on the amount converted (not just gains) proportional to the pretax IRA.
Like we don't give enough through payroll taxes, annual taxes and everything else. Retirement is not an option for the middle class. Money is a living hell.
My cost are $385 a year, and getting lower ( i believe) in the current year, in my 401k. Withdrawals are not a problem ( USW) . not sure i will leave the money there, but it looks fair so far.
My 401k is a 403b that has been sitting in place with no more gaining interest and want to rollover to an IRA. I am 57. Or should i switch it to Roth IRA and eat up the taxes and penalty??
I am 62 and have been retired for 6 years. I have a pension and I began to draw my Social Security and I inherited some money from my mom when she passed away so I don’t need to use my 401k to survive. It made 46% last year and 29% so far this year which seems crazy. It seems like a pyramid scheme sometimes so I get scared and take it out sometimes. I have 500,000 which can earn money quickly. I owe 79,000 on my house at 4%. I feel that I should continue to make money on the money I would use to pay it off. I don’t have consumer debt. No car payment. What should I do?
Question: I have huge gains above basis in my 401k. If I roll it to an IRA, I have to realize those gains, be out of the market while check is sent and then I’ll have to reinvest at a much higher basis in a limo sum. Is this a concern? Is there a way to avoid this like an-kind 401k to IRA rollover?
My mom is 71 and she has 5,000 of 401k. She doesn't want to use it because she doesn't want to lose medicare A-B beucase both are sick. They also get Stamps . They need to use that money to fix their house and to get an electric scooter. can they use that money without losing everything they are getting ?
I think it’s great to ask professionals what to do with their money or at least get some advice or suggestions. Some people don’t know the penalties for withdrawing all of it or what percentage is taken out before a certain age. This is for a retirement, so it’s a pretty hefty decision to make.
I'm 65 years old now but I can't get social security money until 67 years. I have to pay 175 dollars every month for Medicare my self insurance that is very unfair and I have 401 k when I can get that money. Can I withdraw all the money from my savings (401k)
From what I understand if you draw all your money out from your 401k you are going to take a financial penalty hit for that. Also you can collect your SS just at a lower monthly rate then if you would wait
We had 3 401k’s. All the plans required you to pick a fund.Means all in the stock market . Found this out when the markets were sinking and we wanted safety in tbills.Rolled them over to Etrade. Put it all in tbills. While the market is down , I’m up 50k ina year just in interest.
@@WallaceDunn I’m pretty wealthy. Really don’t care what the markets do So I’m in Tbills now and looking at about 160k in interest.You get to a point where you have enough that you can’t spend it all.Rather be safe than sorry.Still have plenty in stocks.
![ILLSLICK - KILLSHOT REMIX [FULL VERSION]](http://i.ytimg.com/vi/RIK8RrqIAzE/mqdefault.jpg)
Option 1 (leave in 410k) pro not mentioned: Those funds are protected from creditors should you be sued in most cases. IRAs are not. I have found this rarely mentioned in pro and con discussions.
O.J. Simpson taught us this.
At age 55 my 401k allowed a 10% in service rollover. At 59.5 I was allowed to move 90% from my 401k to an IRA. Better investment choices at lower costs. I never looked back. I plan to convert my pre tax 401k money over to the Roth side of my 401k just before I retire in less than two years.
I am strategically allocating my financial transactions across multiple years in order to optimize tax planning.
@ChloeBensonBeautyBoxes that's what I need to now more. But I still have a lot of time... about 15 years from retirement.
I agree I recently rolled over my 401k from a previous emplyer the account was with Fidelity...the fees was outrageous....its in Vanguard and doing better...lower fees and more options to invest in. I am currently working on doing small ira conversions into my roth ira with this money.
Spend it and enjoy the rest of your short life
Cons of IRA rollover: it kills the ability to do tax free back door Roth conversions ($8k/yr depending on age ). Search for “reverse rollovers for backdoor roth” in case you already rolled over. The reason is that aftertax IRA to roth IRA is only taxed on the gains unless you also have a pretax IRA (for example from a 401k rollover!). With the extra rollover ira, the roth conversion is taxed on the amount converted (not just gains) proportional to the pretax IRA.
Like we don't give enough through payroll taxes, annual taxes and everything else. Retirement is not an option for the middle class. Money is a living hell.
Very good information. Thank you
My employer will not allow to keep 401k with the company, must move it
If I withdraw from my 401(k) Roth, I can benefit from a tax break at age 60.
My cost are $385 a year, and getting lower ( i believe) in the current year, in my 401k. Withdrawals are not a problem ( USW) . not sure i will leave the money there, but it looks fair so far.
My 401k is a 403b that has been sitting in place with no more gaining interest and want to rollover to an IRA. I am 57. Or should i switch it to Roth IRA and eat up the taxes and penalty??
I am 62 and have been retired for 6 years. I have a pension and I began to draw my Social Security and I inherited some money from my mom when she passed away so I don’t need to use my 401k to survive. It made 46% last year and 29% so far this year which seems crazy. It seems like a pyramid scheme sometimes so I get scared and take it out sometimes. I have 500,000 which can earn money quickly. I owe 79,000 on my house at 4%. I feel that I should continue to make money on the money I would use to pay it off. I don’t have consumer debt. No car payment. What should I do?
Pay it off and have zero debt
Question: I have huge gains above basis in my 401k. If I roll it to an IRA, I have to realize those gains, be out of the market while check is sent and then I’ll have to reinvest at a much higher basis in a limo sum. Is this a concern? Is there a way to avoid this like an-kind 401k to IRA rollover?
My mom is 71 and she has 5,000 of 401k. She doesn't want to use it because she doesn't want to lose medicare A-B beucase both are sick. They also get Stamps . They need to use that money to fix their house and to get an electric scooter. can they use that money without losing everything they are getting ?
And if I take out my 401(k) Roth, I have a text break at age 60
Pls its so annoying to person asking whatvto do with their money hey thats your money go enjoy it dobt be stupid asking people fir what
I think it’s great to ask professionals what to do with their money or at least get some advice or suggestions. Some people don’t know the penalties for withdrawing all of it or what percentage is taken out before a certain age. This is for a retirement, so it’s a pretty hefty decision to make.
Can I take out a portion for a down payment on a car at age 60?
Pay cash for your car . New or used pay 100 percent of what it takes to pay it off at time of purchases.
😂😂😂
I'm 65 years old now but I can't get social security money until 67 years. I have to pay 175 dollars every month for Medicare my self insurance that is very unfair and I have 401 k when I can get that money. Can I withdraw all the money from my savings (401k)
Why can't you get social security when everyone is eligible at age 62 albeit at a reduced rate in comparison to what you'd get at age 67?
From what I understand if you draw all your money out from your 401k you are going to take a financial penalty hit for that. Also you can collect your SS just at a lower monthly rate then if you would wait
How about 457 plan
We had 3 401k’s. All the plans required you to pick a fund.Means all in the stock market . Found this out when the markets were sinking and we wanted safety in tbills.Rolled them over to Etrade. Put it all in tbills. While the market is down , I’m up 50k ina year just in interest.
The market is at an all-time high, how's that working out for you now?
@@WallaceDunn I’m pretty wealthy. Really don’t care what the markets do
So I’m in Tbills now and looking at about 160k in interest.You get to a point where you have enough that you can’t spend it all.Rather be safe than sorry.Still have plenty in stocks.