i401(k) rolling over to traditional IRA

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ultraviolet
Posts: 131
Joined: Tue Feb 21, 2017 10:32 am

i401(k) rolling over to traditional IRA

Post by ultraviolet »

Can I close my i401(k) and roll it over to an IRA and then start a new i401(k) for the same business at a later date?
terran
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Joined: Sat Jan 10, 2015 10:50 pm

Re: i401(k) rolling over to traditional IRA

Post by terran »

Yes, but you have to wait some period of time. 1-2 years if memory serves.
MishkaWorries
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Joined: Wed Aug 14, 2019 4:39 pm

Re: i401(k) rolling over to traditional IRA

Post by MishkaWorries »

What are you trying to accomplish?
We plan. G-d laughs.
Topic Author
ultraviolet
Posts: 131
Joined: Tue Feb 21, 2017 10:32 am

Re: i401(k) rolling over to traditional IRA

Post by ultraviolet »

MishkaWorries wrote: Sun May 02, 2021 3:02 pm What are you trying to accomplish?
I want to use the vanguard advisor service and I don’t have enough in my Roth so I’m thinking about closing the 401k so that it’s in a roll over and then opening a new one. Or I could open an SEP. Lower contributions though.
MishkaWorries
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Joined: Wed Aug 14, 2019 4:39 pm

Re: i401(k) rolling over to traditional IRA

Post by MishkaWorries »

Can you do a partial rollover and keep the solo 401K open or amend your solo 401K plan to change brokers to Vanguard?
We plan. G-d laughs.
Topic Author
ultraviolet
Posts: 131
Joined: Tue Feb 21, 2017 10:32 am

Re: i401(k) rolling over to traditional IRA

Post by ultraviolet »

A partial rollover is a good idea! I didn’t realize I could do that. I really don’t know what my options are. I was planning on calling them tomorrow to ask. The i401k is with vanguard already so I’m sure they’ll be able to help me figure this out.
Topic Author
ultraviolet
Posts: 131
Joined: Tue Feb 21, 2017 10:32 am

Re: i401(k) rolling over to traditional IRA

Post by ultraviolet »

terran wrote: Sun May 02, 2021 2:20 pm Yes, but you have to wait some period of time. 1-2 years if memory serves.
This is the right answer. They make you wait 12 months before you can open another one.
exodusNH
Posts: 156
Joined: Wed Jan 06, 2021 8:21 pm

Re: i401(k) rolling over to traditional IRA

Post by exodusNH »

ultraviolet wrote: Sun May 02, 2021 7:14 pm
MishkaWorries wrote: Sun May 02, 2021 3:02 pm What are you trying to accomplish?
I want to use the vanguard advisor service and I don’t have enough in my Roth so I’m thinking about closing the 401k so that it’s in a roll over and then opening a new one. Or I could open an SEP. Lower contributions though.
One thing to watch out for is that if you have tax-deferred funds in an IRA, you will limit your ability to do Roth IRA conversions ("backdoor Roth"). And if you ever want to roll that IRA back into a 401K, you need to make sure that you've not commingled the funds.
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