Thank you so much for the clear instructions. I feel confident dealing with the retirement prep after watching a series of your videos. Many other people are on the same important topic but you are the very best!!!
Thank you for the great info. So If I roll over my 401k to a traditional Roth IRA, I get the current value of my 401k in buying power in the new IRA account?
When you leave the 401(k), you typically get the market value of your investments on the day they process your distribution request. That value can rise and fall, but yes, they generally cut a check for the current value. Then, you typically re-deposit the funds in an IRA and eventually reinvest. That whole process can take some time. Note that if you're not 100% vested in contributions your employer made on your behalf, you don't get to take that money. But you're always 100% vested in your own contributions. You can learn more about vesting here: th-cam.com/video/KWffAznGNZA/w-d-xo.html
Thank you for the videos! I have 401K and in that account I have After Tax contribution. Can I rollover after tax contributions to Traditional or Roth IRA? Also, Can I not roll over the earnings, keep the earnings in the 401K?
That's a good question, and a first step might be to ask your employer if you can pick and choose which money types to roll out or keep. Beyond that, my standard disclaimer would apply: Like most important questions, it would be irresponsible of me to try to answer in TH-cam comments without knowing more about your situation and the context. I've basically decided to not even attempt to answer technical questions in the comments. I'd feel terrible if I just gave quick advice and ended up leading viewers astray (with expensive consequences for you), and I could spend all day answering questions. I'm sure the answer is available online somewhere, or you can always run that by your CPA, plan administrator, or financial professional for individualized guidance. Thanks, and best wishes.
It's tough to say without knowing all of the details. Given the way I'm reading your comment (and my wild guesses about the situation), I'm not sure you made a bad move. It might depend on what exactly you moved the money into-the fees and expenses, restrictions, investment options, services provided, any employer stock, etc., among other things.
Thanks for your reply. My biggest concern was the taxes it would cost me , because l moved it too early? Is there an age restriction on converting to IRA from 401k?
Hi. What can I do? I have an outstanding loan balance with my Walmart/Merril Lynch 401K and I'm starting a MUCH better job on monday. Meril will not accept 401K loan payments since I'm leaving Walmart. Before I was able to make bi-weekly paycheck payments towards my 401K loan. What CAN I do? I want to roll my 401K over with my new job. I think.
I would ask the new employer if they can accommodate the loan from the old plan. But unfortunately, I would not be optimistic about that happening. You could also ask the old employer if there's any way for you to pay off the loan with a lump sum (that's assuming you have the cash available, which isn't always the case-people typically borrow because they need extra cash flow). It's great to hear that the new job is an improvement.
An IRA is not a 401K if you start a new job? Am I correct? There are no % company matches if I roll my former employer's 401K plan into an IRA at my new job?
You are correct: An IRA does not become a 401(k) when you start a new job. The employer would have their own 401(k) program (assuming there is a 401(k) available). It's also correct that you generally don't get a company match for rolling a former employer's plan into an IRA or into your new job's 401(k). Matching typically applies to contributions you make to a 401(k) through payroll ("salary deferral" contributions, for example), but not to "rollover" contributions.
Thank you so much for the clear instructions. I feel confident dealing with the retirement prep after watching a series of your videos. Many other people are on the same important topic but you are the very best!!!
Thank you for the kind words!
Thank you for explaining this
I will be in touch
That's very helpful..thanks.
Thank you for the great info. So If I roll over my 401k to a traditional Roth IRA, I get the current value of my 401k in buying power in the new IRA account?
When you leave the 401(k), you typically get the market value of your investments on the day they process your distribution request. That value can rise and fall, but yes, they generally cut a check for the current value. Then, you typically re-deposit the funds in an IRA and eventually reinvest.
That whole process can take some time.
Note that if you're not 100% vested in contributions your employer made on your behalf, you don't get to take that money. But you're always 100% vested in your own contributions. You can learn more about vesting here: th-cam.com/video/KWffAznGNZA/w-d-xo.html
Thank you for the videos!
I have 401K and in that account I have After Tax contribution. Can I rollover after tax contributions to Traditional or Roth IRA?
Also, Can I not roll over the earnings, keep the earnings in the 401K?
That's a good question, and a first step might be to ask your employer if you can pick and choose which money types to roll out or keep. Beyond that, my standard disclaimer would apply: Like most important questions, it would be irresponsible of me to try to answer in TH-cam comments without knowing more about your situation and the context. I've basically decided to not even attempt to answer technical questions in the comments. I'd feel terrible if I just gave quick advice and ended up leading viewers astray (with expensive consequences for you), and I could spend all day answering questions. I'm sure the answer is available online somewhere, or you can always run that by your CPA, plan administrator, or financial professional for individualized guidance. Thanks, and best wishes.
I did some 401 conversion to a traditional ira, in my early 50s, now lm wondering lf l did a wrong move?
It's tough to say without knowing all of the details. Given the way I'm reading your comment (and my wild guesses about the situation), I'm not sure you made a bad move. It might depend on what exactly you moved the money into-the fees and expenses, restrictions, investment options, services provided, any employer stock, etc., among other things.
Thanks for your reply.
My biggest concern was the taxes it would cost me , because l moved it too early? Is there an age restriction on converting to IRA from 401k?
Hi. What can I do? I have an outstanding loan balance with my Walmart/Merril Lynch 401K and I'm starting a MUCH better job on monday. Meril will not accept 401K loan payments since I'm leaving Walmart. Before I was able to make bi-weekly paycheck payments towards my 401K loan. What CAN I do? I want to roll my 401K over with my new job. I think.
I would ask the new employer if they can accommodate the loan from the old plan. But unfortunately, I would not be optimistic about that happening. You could also ask the old employer if there's any way for you to pay off the loan with a lump sum (that's assuming you have the cash available, which isn't always the case-people typically borrow because they need extra cash flow). It's great to hear that the new job is an improvement.
An IRA is not a 401K if you start a new job? Am I correct? There are no % company matches if I roll my former employer's 401K plan into an IRA at my new job?
You are correct: An IRA does not become a 401(k) when you start a new job. The employer would have their own 401(k) program (assuming there is a 401(k) available).
It's also correct that you generally don't get a company match for rolling a former employer's plan into an IRA or into your new job's 401(k). Matching typically applies to contributions you make to a 401(k) through payroll ("salary deferral" contributions, for example), but not to "rollover" contributions.