I am trying to rollover a 401k from my previous job to my IRA at Vanguard and just hit this screen which confuses me:
Some context: last year I did a Backdoor Roth contribution in January. I wound up being laid off last year. I held off rolling my 401k to an IRA until this year because I seemed to remember that the Backdoor Roth required having a zero balance in your IRA in order to get the tax benefit. That's why I started the rollover process today.
I'm not sure what my future work life will be (I'm middle aged, probably don't have to work again, but want to do something work-related in the future). Are the benefits of the a Rollover IRA important? Are there any drawbacks?
I had never heard of a "Rollover IRA" before and am not sure whether to open one just for this. Thoughts?You can move your employer plan to your traditional IRA, but there could be benefits to moving your employer plan to a rollover IRA instead. In some situations, if you keep your rollover money separate from your personal retirement savings, you may be able to move the rollover money into another employer plan if you get another job. If you are retiring, this benefit might not be important to you. If you have questions about this, you should consult a tax advisor.
Some context: last year I did a Backdoor Roth contribution in January. I wound up being laid off last year. I held off rolling my 401k to an IRA until this year because I seemed to remember that the Backdoor Roth required having a zero balance in your IRA in order to get the tax benefit. That's why I started the rollover process today.
I'm not sure what my future work life will be (I'm middle aged, probably don't have to work again, but want to do something work-related in the future). Are the benefits of the a Rollover IRA important? Are there any drawbacks?
Statistics: Posted by Booper — Wed Jan 01, 2025 12:05 pm — Replies 4 — Views 126