A viewer named Kyle asked how a Roth 401(k) rollover works if you also have employer matching contributions. Here is his email:
“Thanks for doing the show. Can you discuss the specifics of rolling over a ROTH 401(k) into an IRA? I just graduated college and am enrolled in my employer’s 401(k). I will be making Roth contributions. I know that my contributions are after-tax, but I understand that my employer’s contributions are pre-tax. So, if I want to roll my 401(k) into an IRA (at some point down the road), am I rolling into 2 different IRAs, a Roth and Traditional IRA? How does that work?”
The short answer is that you’ll end up with two IRAs, a Roth and a Traditional IRA. We dive into the details in this video.
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ABOUT ME
While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I’m the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money.
I’m also the author of Retire Before Mom and Dad–The Simple Numbers Behind a Lifetime of Financial Freedom (
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DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. Your investment and other financial decisions are solely your responsibility. It is imperative that you conduct your own research and seek professional advice as necessary. I am merely sharing my opinions.
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Why can't the money just move peer to peer like any other bank transfer?? I'm annoyed that I have to do anything beyond making a phone call…or let me do it online.
When I rolled over my 401 k into an ira I ended up hundreds of dollars less than the day I closed it and the fee was only $125 in Total losing over $300. I don’t know why it was so short some lost bonds cashed out early?
Why do you need the free Capitalize service? Do some companies charge for this rollover to IRA?
My credit union allows taking a picture of a check and "depositing" this into my account. That was so cool especially for an old fart like myself having grown up in the 50's and 60's.