Thinking of rolling a 401k into a Roth IRA? Here is something you may not have thought of that can save you time and money.
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I'm employed still and turd company won't let me roll over 401k
If the 50k from the 401k is not entirely a contribution, does it become a full contribution when you roll it over to a Roth IRA?
5 year rule doesn’t apply at a certain age.
When I convert 401(k) to a Roth account I understand you can’t touch it for five years, but what about I’ve already had the Roth account over five years already
why i have to wait 5 years if the money is been already in the 403b for years? and why not to roll over direct to a Roth IRA?
anyone can answer, im thinking of leaving my job can i take my 401k to roll over immediately in a ira and can i start using this ? do i have to wait to 69 or 70
So if i transfer $3000 from my 401k to my Traditional Ira and I grew that money to $8000 and want to convert to Roth. How much of that money I can and how soon can I withdraw?
What are the chances that the government one day says, hmmm, we are missing out on these gains, and change the rules and suddenly tax ROTH monies also?
I am 40 years old. I have a Traditional and a Roth 401k. All of my contributions are to my Roth 401k now. can I convert my Traditional 401k to Roth? and could they tax the tax from the sale or do I need to pay the taxes from my personal bank account?
Lose the annoying intro
I won't subscribe but i'll give you a like. Thanks.
So why not take the taxes directly from the conversion. Can’t I take a cash equivalent from and invest that money separately and hav almost the same result as if my paid the taxes from the cash account.
Hi, Dustin. I'm a bit confused. My understanding from my plan administrator, and based on all i've ever been taught, is there is no withdrawal PENALTY (but you still have to pay the taxes) if you convert 401K money into an existing Roth account that is at least 5 years old AND you are past 59-1/2. Are talking about a Roth that is new (less than 5 years old) and you have not reached 59-1/2? I think the caveat here is that any owner of a Roth has to wait 5 years AFTER THEIR FIRST CONTRIBUTION before they can withdraw penalty free AND meet the age exception. I opened my Roth about 9 years ago with $100 just to get the clock started. Now that I am past 59-1/2 and just did a substantial rollover, all of that Roth money including the amount rolled over into it is available to me, penalty free; I will owe the taxes next year because the IRS considers it income, and I wanted to rollover a full base amount without an immediate tax payment. However, it would not make sense for me to withdraw from the Roth for about a decade so that I can enjoy the investment growth – hopefully.
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.
The best option is: Make another account just for Roth IRA and don't touch it. Try to save money, invest and don't spend it. Think for your future. Don't live just for now!
Excellent video as always, thanks for the info. I’m a bit puzzled:
I quit my job last year and started my own business, so this tax year my income won’t be as high as it was with my previous job. I have $20k on 401k. Do you think I should roll to a Roth ira or just leave my 401k as is for a couple yrs and then rollover. This yr I just want to contribute $6k once I open the Roth.
Thanks!!
Excellent video,thanks for the info. I’m a bit puzzled:
I quit my job last year and started my own business, so this tax year my income won’t be as high as it was with my previous job. I have $20k on 401k. Do you think I should roll to a Roth ira or just leave my 401k as is for a couple yrs and then rollover. This yr I just want to contribute $6k once I open the Roth.
Thanks!!
Question: When I leave my job, can I rollover my Roth 401k portion to a Roth IRA, BUT ALSO, leave my traditional 401k with my former employer?
Don't people see how stupid it is to roll over a 401K to a ROTH? It is a DUMB move.
So you're saying after 5yrs its tax free?
Can you go the other way? From roth to 401
Can you go more in depth on the Roth five year rule? I'm 52 yrs old and I have a traditional/Roth 401K combined account. I want to quit my job and retire at 54. I'm planning to transfer my Roth 401K portion to my Fidelity Roth and my regular 401K portion to my Fidelity rollover IRA account after quitting. Can I do that without tax penalty and not worrying about the 5 year IRS rule? I know you suppose to be 59 1/2 to be on the clear with the IRS. Thank you in advance!
Open a Roth IRA now so that the 5-year clock starts ticking. After the required time period, roll over your 401k funds (IRS takes its share) and you're free to take that money out anytime. Correct me if I'm wrong.
Can you spread out the amount you rollover from a traditional 401K to a roth IRA to pay those taxes over a 2-3 year span?
Is there a limit that can be rolled over into the Roth? Like the 6000 yearly limit or can the entire balance be rolled over?
Is there still a 6k limit? And if you have that much already in your IRA, couldn't you then pull the money out? Because let's say there is 10k in it., you roll over 5k. Not you have 15k but you could pull out that 5k because you already had 5k into it
Why must you first roll your 401(k) to a traditional IRA before rolling into a Roth IRA? Can you not roll from a 401(k) directly to a Roth IRA?
Great video! Love your content. Quick question. My wife has a traditional 401k (only about 3k) from a previous employer. We want to convert it to a Roth IRA. Is it a good idea? Any advice helps. Thanks.
I hear this mantra about not paying the the tax on a Roth Conversion out of your pre-tax retirement account. All our money is in TIAA with no outside investments. We pay 12% on the money we convert (not exceeding $81,000 taxable income), and when we move to a state with an income tax, we will pay a marginal tax as high as 25%, considering the arcane marginal taxation on social security. We save that tax by cashing out our Roths, rather than withdrawing pre tax money. Maybe our situation is unusual.
If you roll a Roth 401k into an roth IRA would you have access to withdraw everything that was in the 401k tax free in 5 years or just the contribution?
What happens if I do this rollover AFTER I turn 59.5 years old?
Does the 5 year rule apply in that situation also – since I can withdraw from my ROTH IRA penalty free at that point?
Your message is not very clear!! bit confusing!!
You can only take distributions from a Roth IRA pre age 59 1/2 without a 10% penalty if you meet certain criteria, college expenses, certain medical expenses, etc. There are others you can research. Also, money converted from a traditional IRA to a Roth IRA is taxed as income and can put you in a higher tax bracket which means you would pay higher taxes on it than if you simply made smaller withdrawals at retirement age. I considered doing this conversion and came up with it's a bad idea unless you're ok with paying higher taxes or penalties or meet specific criteria.
Great video. But, Roth IRA has a limit of $6000 or $7000 per year. Are you saying that when I convert my $80K traditional 401K dollars into Roth IRA, there is no such limit? I do understand that I'll need to pay tax on this $80K from my own pocket at conversion. Please clarify. Thank you!
You didn't mention the age of the person doing the conversion, you don't pay any penalty if you are over 59 1/2, but you do pay a tax on the conversion.
Roughly how much would 10 to 50 thousand cost you in taxes if you switched it from regular 401k to Roth IRA?
5 year after we convert from 401k to Roth IRA, Can I pull the money out "without tax" because it's considered a contribution or I will have to pay tax up front after the conversion? Thanks
Thanks for clear explanation
Great video, from an old job if I rolled over 25k from my Roth 401k to a Roth IRA I have to pay taxes???
What about if I have an Roth 401k from a old job and I’m 59 1/2 y/o I rolled over fidelity into an Roth 401k can withdraw all the money and pay taxes?
This is a great video. I plan to retire early prior to my nominal retirement age. I wanted to place my money into my personal portfolio and live off passive didvend income. This helps with a stretgy to do so!
I have a question that I can’t find the answer anywhere. I currently have a Roth401k with my current employer, I also have a Roth IRA. I don’t like the investments offered in my R401k can i roll what I currently have into my Roth IRA so I can invest in what I want? I’m still working for the company and I want my future contributions to continue to go into the Roth 401k, I just want to know if it’s possible to roll out what’s already in there while not changing anything or still with the company.