I’m retired with a governmental 457(b) at Empower. I want to roll it over to Vangaurd. However, I also have a non-deductible IRA at Vanguard. (Have been filing 8606 forms throughout so I know the basis.) Folks are telling me to stay with Empower. They warn that if I move the 457(b) it will be a tax nightmare due the existing non-deductible IRA. The IRS will view the non-deductible IRA and the rolled over 457(b) as one big IRA and mix “the coffee and the cream.”
Is there a way to roll over the 457(b) and keep it segregated from the non-deductible IRA? Maybe peg it is a “rollover IRA”? Someone has told said that I can’t establish a new 457(b) at Vanguard. Only if I was still working.
Thank you.
Is there a way to roll over the 457(b) and keep it segregated from the non-deductible IRA? Maybe peg it is a “rollover IRA”? Someone has told said that I can’t establish a new 457(b) at Vanguard. Only if I was still working.
Thank you.
Statistics: Posted by diyinvestor — Tue Jul 30, 2024 10:03 pm — Replies 3 — Views 269