How to Rollover a 401k to an IRA | 7 Easy Steps
ฝัง
- เผยแพร่เมื่อ 30 มิ.ย. 2024
- How to rollover a 401k to an IRA📚 My book, Retire Before Mom and Dad-amzn.to/3onzW0S 📊 Best investment tracking tool-go.robberger.com/empower/yt-
Resources & Tools
📚 My Book (of course): amzn.to/3onzW0S
✅ Personal Capital: go.robberger.com/empower/yt-
✅ My favorite credit cards: www.allcards.com/go/cr-best-c...
✅ Checking accounts: www.allcards.com/best-checkin...
✅ Online savings accounts: www.allcards.com/best-online-...
✅ Rakuten (Ebates): go.allcards.com/rakuten/yt-55
✅ Free Investment Tracking Spreadsheet: docs.google.com/spreadsheets/...
0:00 7-Step 401k Rollover
0:23 Step 1: Decide where to open an IRA
The two primary choices are a traditional broker or a robo-advisor
2:00 Step 2: Select the type of IRA account
For most, I believe a Rollover IRA is the best option
4:18 Step 3: Get help from IRA provider
Don't call your 401k company to start the process. Start with your new IRA provider.
5:17 Step 4: Contact your 401k provider
It's here that you'll initiate the rollover
7:10 Step 5: Deposit check into Rollover IRA
It's critical that this happen within 60 days to avoid taxes and penalties.
7:40 Step 6: Invest the money
When the money is deposited in your Rollover IRA, it will go into a cash account. You must invest in according to your investment plan
8:00 Step 7: Designate beneficiaries
It's critical to designate primary and secondary beneficiaries. Consult your trust and estates attorney for advice.
If you want to rollover a 401k to an IRA, it's critical that you get the process right. One mistake can trigger taxes and even penalties. It starts with deciding where to open your Rollover IRA. I recently chose Merrill Edge, but there are other good brokers. You might also select a robo-advisor like Betterment or Wealthfront. One you decide, the next step is to call the IRA provider. Don't start with your 401k provider. The IRA company can help you through the process. If the rollover is by check, make sure to get it deposited into your new Rollover IRA within 60 days. If you don't, the IRS could deem it a distribution and charge you taxes and a penalty. Once it's in the new IRA, be sure to invest the money according to your plan and set the primary and secondary beneficiaries.
ABOUT ME
While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I'm the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money.
I'm also the author of Retire Before Mom and Dad--The Simple Numbers Behind a Lifetime of Financial Freedom (amzn.to/3by10EE)
LET'S CONNECT
TH-cam: / @rob_berger
Facebook: / financialfreedomguy
Twitter: / robert_a_berger
DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions.
AFFILIATE DISCLOSURE: Some of the links on this channel are affiliate links, meaning at no cost to you I earn a commission if you click through and make a purchase and/or subscribe. However, I only recommend products or services that (1) I believe in and (2) would recommend to my own mom. - แนวปฏิบัติและการใช้ชีวิต
![แม่กลองสองใจ - ซีแกรม โตเกียว มิวสิค [ OFFICIAL MUSIC VIDEO ]](http://i.ytimg.com/vi/GSQfVjcr_f4/mqdefault.jpg)
Excellent information.
Thank you this step by step review. Would there be fees from the funds for liquidating while in this process?
This was helpful. Thank you.
Thank you, Rob. I'm assuming the process would be similar for a 403(b)
Mentioning the difference between a direct or indirect rollover would be helpful. Also you do not need to sell stock as you can in kind transfer these if preferred.
Great points Rob but, my wife has 3 different 403b her hospital merged 3 times in 14 years. These corp hospitals a nightmare to find out who will sign off the rollover. It could take weeks sitting on the wrong person desk. I was leaning to exchanging to cash stable value if market tanks before the rollover.
i am a bit confused on this one. I am planning to start doing some roth conversions when i retire next year. (From TSP deferred to a Fidelity IRA- then pay taxes and to my Roth IRA). Can't I do that directly to the regular IRA. Is that a bad idea? TSP is a bit of a beast when it comes to transfers in and out. They warn about 10 to 20 or more days just to process.
What about 457b or 401a plans, would those follow the same step and put into a rollover IRA
do Merill Edge have a rollover ira? i tried to rollover my 401k . i was told to do a traditional ira.
Who’s the right persons thta can help to do this ??
why leave Fidelity? you didn't go into that. thanks
Hi I am 65 and half still working full time I have some 401k at my work shout I leave there for a little while or should I roll over IRA thank
Hi Rob,How is the case if employer's 401k is having both pretax and post tax contribution. Does rollover IRA accommodate both or we need both type of IRA accounts (rollover IRA + roth IRA for post tax).
You'll need two IRAs. Pre-tax goes to a Traditional IRA and post-tax goes to a Roth IRA. Rollover is really a designation, not a separate account type.
Hi Rob, thanks for the thoughtful videos, I'm a hooked viewer. Is there any way to roll over a 401k from a former employer (held at Fidelity) to my Vanguard Rollover IRA without first liquidating the positions held at Fidelity account? I don't like the idea of losing exposure to the market. From the video it sounded as if that's not the case, but thought to check in with you to confirm. I might just keep the money with Fidelity if I have to liquidate it. Thanks!
You can only transfer stock as in kind in a rollover. All funds must be sold
@Rob Berger. New subscriber here. What do you recommend should be my allocation for my 401k? I’m 54 and I’m putting my over $200k on Large Cap at 80%, Middle Cap and Small Cap at 10% each. Any suggestions are greatly appreciated. Thanks
I like this guy but don’t go to him for what to buy. Listen to Warren Buffett or John Bogle, Diversified low cost index funds. If that is what you own in Large, Mid, and Small Cap, then you did the right thing.
Is another benefit of using a rollover ira instead of traditional that it allows you to do backdoor roth? Think I heard bd roth wasn't possible if you have a traditional ira.
Right. Technically it's possible, but would trigger some amount of taxes depending on how much you had in a traditional IRA.
The IRS looks at all your Traditional IRAs as one big bucket, regardless if any of them are rollovers. You can still do backdoor Roth conversions with pretax money in Traditional IRAs, but it gets messy since they pro-rate the taxable portion. It's much cleaner to not mix pre-tax and post-tax money when doing Roth conversions.
Hey rob where are you doing now before 401k to your Roth IRA at betterment. Do you need to put in a new account or can you put it into an existing Roth account
Sorry I mean when I roll over the 401k account
When I roll over the 401k account
contemplating doing this (401k to IRA to ROTH)
Don't think that's possible. Pretty sure you'll have to do a Roth conversion later.
If I roll over a Roth 401 k to a Roth IRA and after age 59 1/2, do I have to wait 5 years for tax free distributions? Thanks
It depends on when you opened the Roth IRA. If the Roth IRA has been open for at least 5 years (and you're 59.5), then you can withdraw the money as soon as you roll it into the Roth IRA.
Hi Rob. Love the videos. Problem. Switching jobs BUT I have an outstanding 401K loan that I can't afford to pay off at the moment. Going to a much better job. How do I get situated with my new job and NOT suffer a taxable event. Also-I want to create my first ROTH IRA and put at least 14,000 in it from my 401K. Any thoughts? Thank you!