401K to traditional IRA or rollover traditional IRA?...
Posted: Fri Jan 10, 2025 1:14 pm
Hi,
I can't seem to get a straight answer from the websites I've looked at, so I thought I would ask the experts here...
Here's my background...
1) I am recently, fully retired. While I may pick up a part time job at some point, I have no plans to contribute to a 401K moving forward.
2) I am 66 and I don't plan on taking RMDs until I have to when I am 73.
3) At Vanguard, I have a traditional IRA, a rollover traditional IRA (with a zero balance that I set up years ago) and a Roth IRA.
4) I've decided not to do anything like Roth conversions, backdoor Roth's, etc.
5) I currently have an existing, traditional, tax deferred 401K at my previous employer that I want to move to Vanguard.
Question....
1) I have the option of moving the 401K to the traditional IRA or the traditional, rollover IRA. There seems to be, maybe, a strategy of moving the funds to the rollover traditional IRA so the 401K funds are not "comingled" with personal contributions. That doesn't exactly make sense to me as whether or not they are comingled, I will have to take an RMD from both the traditional and rollover IRAs when I reach 73. I must be missing something. Can you help me?
Many thanks!
I can't seem to get a straight answer from the websites I've looked at, so I thought I would ask the experts here...
Here's my background...
1) I am recently, fully retired. While I may pick up a part time job at some point, I have no plans to contribute to a 401K moving forward.
2) I am 66 and I don't plan on taking RMDs until I have to when I am 73.
3) At Vanguard, I have a traditional IRA, a rollover traditional IRA (with a zero balance that I set up years ago) and a Roth IRA.
4) I've decided not to do anything like Roth conversions, backdoor Roth's, etc.
5) I currently have an existing, traditional, tax deferred 401K at my previous employer that I want to move to Vanguard.
Question....
1) I have the option of moving the 401K to the traditional IRA or the traditional, rollover IRA. There seems to be, maybe, a strategy of moving the funds to the rollover traditional IRA so the 401K funds are not "comingled" with personal contributions. That doesn't exactly make sense to me as whether or not they are comingled, I will have to take an RMD from both the traditional and rollover IRAs when I reach 73. I must be missing something. Can you help me?
Many thanks!