401k (and Roth 401k) Rollover

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Joined: Fri Feb 13, 2015 11:35 am

401k (and Roth 401k) Rollover

Post by caderader » Fri Jan 12, 2018 6:17 pm

Hi all,

I know this topic has been discussed ad nauseam but I still can't seem to wrap my head around the best strategy for me.

I am planning on rolling over my 401k from a previous employer to an IRA. I would like to have a three fund portfolio.

I have ~$2,200 in my Traditional 401k and ~$900 in my Roth 401k.

All the posts I've read on this have made me feel like this is a complicated choice but is it really just as simple as rolling the t401k to a tira and the roth 401k to a roth IRA?

FYI i'm currently making about 50k/yr (2nd yr in the workforce) and expect to eventually make about 250k/yr.

If I've missed giving some important detail here that is needed to understand my situation please let me know.


Alan S.
Posts: 7083
Joined: Mon May 16, 2011 6:07 pm
Location: Prescott, AZ

Re: 401k (and Roth 401k) Rollover

Post by Alan S. » Fri Jan 12, 2018 7:24 pm

If you are confident about the rapid progression of your future income, I suggest that you roll over both portions to your Roth IRA. You will owe taxes on 2,000. Then be sure to keep track of the year and type of contributions made to your Roth IRA in case you ever need to take a distribution before your Roth is qualified at age 59.5.

For the Roth 401k money, it MUST go to your Roth IRA if it is rolled over. The pre tax money can go to either type of IRA, but it is a small amount in the context of your future earnings.

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