Keeping track of 401k and roth 401k contributions while doing rollovers

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rm
Posts: 211
Joined: Fri Oct 31, 2008 6:09 pm

Keeping track of 401k and roth 401k contributions while doing rollovers

Post by rm » Sun Aug 12, 2018 9:42 pm

I have 401k with fidelity. Over the years I have some in 401k and some in roth 401k.

I am planning to sell everything and rollover into fidelity brokerage link. Reason: my employer choice of funds are high expense ratio funds.When I transfer to brokeragelink how do I keep track of my 401K and Roth 401k contribution amounts and gains. Will fidelity (and for that matter any other 401k provider) be able to automatically track this.

While we are on this topic, how do I keep track if I ever to rollover from brokeragelink to say Vanguard.

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celia
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Location: SoCal

Re: Keeping track of 401k and roth 401k contributions while doing rollovers

Post by celia » Sun Aug 12, 2018 9:57 pm

Roll the Roth 401K over to a Roth IRA first (at any custodian). After that settles and looks correct, roll the remainder to tIRA. You don't have to keep the contributions and growth separate since they will be taxed (or not) the same when the money is withdrawn. Note that if you are still employed, you may not be able to do a rollover until you leave the company or turn 59.5. Check the plan documents to see if rollovers are permitted otherwise.

Spirit Rider
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Joined: Fri Mar 02, 2007 2:39 pm

Re: Keeping track of 401k and roth 401k contributions while doing rollovers

Post by Spirit Rider » Sun Aug 12, 2018 10:31 pm

You are not doing a rollover to the brokerage link. It still exists entirely within the accounting of your 401k plan.

Your plan must separately account for the assets (pre-tax {employee elective deferrals, employer contributions and rollovers}, Roth {employee elective contributions and rollovers}, etc...) regardless whether they are invested the plan's pooled account or separate brokerage link accounts.

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