Transfer Trad 401K

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Aaabbbccc
Posts: 9
Joined: Mon Sep 16, 2019 11:54 am

Transfer Trad 401K

Post by Aaabbbccc »

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?
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FiveK
Posts: 10827
Joined: Sun Mar 16, 2014 2:43 pm

Re: Transfer Trad 401K

Post by FiveK »

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?
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