Jump to content

Please consider disabling your adblocker for CreditBoards if you have not already done so.  This site depends on advertising revenue to stay online.


Sign in to follow this  

are there any concerns in rolling over 401k from prior employers

Recommended Posts

The wife and I each have 2 401k accounts because we changed jobs a couple times.  Are there any issues if we want to roll over the prior employer's account to our current employer?  The benefit for us would just to have it consolidated.  Any issues that we may need to be aware of?

Share this post


Link to post
Share on other sites

There should be no problem rolling over, if your current plan allows for it, from an old 401K into a new employers 401K. If you were moving it to a roll over IRA there is a suggestion that keeping it separate is best.

While the maintenance of separate accounts is not explicitly required under law, it helps to avoid potential issues during a bankruptcy proceeding. With separate accounts, the origin of assets is easy to document and the asset pools are easy to track for purposes of securing all available bankruptcy protections.

https://www.investopedia.com/ask/answers/081915/my-ira-protected-bankruptcy.asp

Share this post


Link to post
Share on other sites

I don't know of any, aside from the paperwork. If your new plan has investments you want, go ahead. 401k plans can be moved to other 401k plans that accept such transfers, along with IRAs. IRAs can be moved to 401k plans, but for some reason a Roth IRA can't be moved to a Roth 401k. When I say 401k, I'm also including the Federal government employee TSP plan, which is basically the same thing.

Edited by Burgerwars

Share this post


Link to post
Share on other sites
1 hour ago, Burgerwars said:

I don't know of any, aside from the paperwork. If your new plan has investments you want, go ahead. 401k plans can be moved to other 401k plans that accept such transfers, along with IRAs. IRAs can be moved to 401k plans, but for some reason a Roth IRA can't be moved to a Roth 401k. When I say 401k, I'm also including the Federal government employee TSP plan, which is basically the same thing.

I'm not familiar with Roth 401k. Is that a post-tax 401k?

Share this post


Link to post
Share on other sites
1 hour ago, IndyPoolPlayer said:

I'm not familiar with Roth 401k. Is that a post-tax 401k?

Yes. A Roth 401k is like a Roth IRA. Contributions are not deducted from your income (still taxable) but Roth withdrawals aren't taxed like a regular 401k or IRA. Not all 401k plans also have Roth 401k plans, so one must check. Employer matching contributions, I believe, only can be made to a non-Roth 401k, so be sure to at least contribute to the employer max match to that. Both non-Roth and regular 401k are totaled together in determining the employee yearly maximum contribution, that is $19,500 for 2020.

Edited by Burgerwars

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this  




  • Member Statistics

    • Total Members
      179,029
    • Most Online
      2,046

    Newest Member
    Smoothblak
    Joined

About Us

Since 2003, creditboards.com has helped thousands of people repair their credit, force abusive collection agents to follow the law, ensure proper reporting by credit reporting agencies, and provided financial education to help avoid the pitfalls that can lead to negative tradelines.
×
×
  • Create New...

Important Information

Guidelines