Here are your 401k Rollover Options for 2022. In this video I explain the 401k Rollover to Roth IRA, 401k Rollover to IRA, 401k Rollover to your New Employer Plan, as well as the option to NOT Rollover your Old 401k and to simply keep it invested with your old employer. When you’re rolling 401k to Roth IRA there is a taxable consequence because you’re moving your pre-tax money into an after tax account & you’ll pay taxes based on your tax bracket for the year in which you initiate the rollover to Roth IRA & deposit the funds into your Roth IRA.
If your New Employer Plan has a Roth 401k Provision then you can rollover your old Roth 401k to your new Roth 401k and there will be no taxable consequence.
If you make too much money to be able to contribute to a Roth IRA due to income limitations and are interested in doing the Backdoor Roth IRA Strategy then you may want to consider keeping the money in your old employer 401k OR doing a 401k Rollover to New Employer….check out my Backdoor Roth IRA video OR Roth Conversion Explained video.
Hope you enjoy the video and find a nugget or two of information to help you on your financial planning journey.
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OTHER VIDEOS YOU MAY LIKE
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Timestamps & Chapter Links
0:00 – Intro
1:55 – Don’t do a 401k Rollover
2:29 – 401k Rollover to IRA
5:35 – 401k Rollover to IRA CONs
10:16 – 401k Rollover to Roth IRA
11:09 – 401k Rollover to New Employer
13:25 – 401k Rollover BONUS TIPS
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I’ve been involved in people’s financial decisions for 15+ years (7 yrs Real Estate experience & 8+ yrs as a former Financial Advisor)…I now bring the financial successes, mistakes, failures, and best financial habits/tips to you through these videos.
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DISCLAIMER: I am not a financial adviser or a certified public accountant. These videos are for educational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments.
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LEARN MORE ABOUT: IRA Accounts
TRANSFER IRA TO GOLD: Gold IRA Account
TRANSFER IRA TO SILVER: Silver IRA Account
REVEALED: Best Gold Backed IRA
Fidelity has a specific IRA for rollovers called a Rollover IRA. Not sure what the difference is between it and a "traditional" IRA.
Love the video!!
Great content, thanks! Question: When moving the money from a 401K to an IRA in this bull market, wouldn't it be a disadvantage to be buying stocks or stock funds at such high prices? Do you have any recommendations on the timing aspect?
Question: In 2020, I did a 401K conversion to a Roth IRA. I understand I need to pay taxes on the amount I moved over. I also did a backdoor ROTH IRA as well for $6K. My question is, do I pay taxes only on the 401K conversion to Roth IRA or do I need to pay taxes on both the 401K conversion as well as the backdoor ROTH IRA.
I’m in desperate need of the money in my 401k I wish I knew about the cares act I would’ve done it then but what do you recommend to do with it now to get the most money out.
Hey man l, great information. I took out a loan against my 401k and still owe 2.5 years on it. About to start new job and they don't offer 401k. If you were in this situation, what would you do?? Thanks
I have a question if anyone smarter than a truck driver can answer it for me. Thank you very much in advance.
I worked for a company that was just recently bought out by a much larger company. I can't roll anything over yet because I'm only 40% vested in the old 401K. Here in a couple weeks when everything is finalized I'll automatically be 100% vested and at that point I'll roll it over. But I was told to wait until then so that I don't lose any of the free money.
So my old 401K is traditional because that was our only option. While I can't roll anything over yet, what I can do is go ahead and start a new 401K with the new company. I'll start making contributions now and do a roll over later. Keeping the old 401K separate isn't an option since the company is going away completely. Our retirement plan will be terminated.
This new company seems like they have more options. So I opted to start contributing to a Roth 401K. They have Fidelity if that matters. My pea brain just likes paying the taxes now. I have my own separate Roth IRA with Vanguard that I just do on my own. All I do there is make regular contributions to an S&P 500 index fund.
My question is how will I roll over a traditional 401K into a Roth 401K? Is that even possible? Is there a way for me to pay taxes on the old 401K now so that the entire thing just becomes Roth? What happens if I go to a different employer 5 years from now and they only have traditional 401K? All this rolling over is getting weird. All I've got upstairs is a hampster running around on a wheel and he's giving it heck, but I'm coming up short. Lol!!!
I'm a new subscriber. Thank you for your efforts. I'm 43 years old if that matters too. If any money guys can answer my question I promise to keep hauling fuel to gas stations so that people can put gas in their vehicles. That's what I contribute I guess. Everyone has their station in life I suppose.
@8:30 Is it really a "fiduciary" type of relationship if the financial advisor is trying to profit from you and your AUM?
I just retired from my job after I turned 55, have a traditional 401K with 222,000 and 97,000 in a checking account, what will be my best option: traditional IRA or Roth?
I have my own self-directed IRA, how can I take money from my 401k at my current employer and move it to the IRA each month? Can I do a Direct Transfer Rollover? Can I do an In-Service Rollover (I'm NOT over 59.5)?
01:02 It's nice that the stupid thing to do is forbidden. A lot of stupidity is legal.
If you go (401k > ira > roth ira [you still pay taxes here]) or if you go (401k> roth ira[you also pay taxes here]). Is there an advantage to either method as they'll both end up in the roth.
Great videos like always, i have a question if you don't mind Mr Scholl, if we over contribute the amount and then excess contribution the extra amount, on tax return do we report the total amount with the over the limit amount or the amount after excess contribution? Many thanks
Thank you this was very clear and easy to follow
So basically it's best to get out of a typical 401k plan and into somewhere that has more stock options to invest in like Webull's IRA plan?? I'm going to have to watch these vids a few times, phew.
Great stuff. I watch several youtube videos on how to trade in the stock market but haven't made any headstart because they are either talking some gibberish or sharing their story of how they made it and I do not want to make mistakes by taking risks in my own hands.