I was wondering if I can transfer to Vanguard given my circumstance?
- I have an old Traditional 401K
- Current company 401K is with MassMutual, where I hold a Traditional account
- I have Trad and Roth IRAs solely used for Backdoor IRA (my Trad has $0)
- Can I transfer my old Traditional 401K at Empower to a Traditional 401K at say, Vanguard?
Transfer Trad 401K
Re: Transfer Trad 401K
A 401k plan is tied to a specific employer, so based only on things specified in your post have a choice between
- keeping the 401k money with that employer's plan, keeping the way clear for the backdoor Roth process, or
- rolling the 401k into a traditional IRA, causing pro-rata taxation when using the backdoor Roth process.
If you are using the backdoor Roth process, however, that implies continued employment. Does your current employer have a 401k plan that accepts rollovers from other 401k plans?
- keeping the 401k money with that employer's plan, keeping the way clear for the backdoor Roth process, or
- rolling the 401k into a traditional IRA, causing pro-rata taxation when using the backdoor Roth process.
If you are using the backdoor Roth process, however, that implies continued employment. Does your current employer have a 401k plan that accepts rollovers from other 401k plans?