Another question regarding 401k rollover to IRA

Investing
#1

Hello,
I just received info from two former employers that I still have a 401K with their company (each >$30000). They are giving me 3 options:

  • leave the assets
  • withdraw the assets
  • or rollover to a traditional IRA.
    I already have a traditional IRA and a Roth IRA with max contributions for this year. So I’m wondering how does it work if I want to put the money to my traditional IRA since the limit is $6000/year ?
    If possible to rollover, would there be fees? How do I proceed?
    What is the best option to grow the money?
    As always, thanks in advance for your time.
#2

Hi @yami42!

Thank you for the question.

  1. Rolling assets over into an IRA does not count against your annual contribution limit.

  2. The different service providers involved would be able to confirm if there are any fees. Specifically, I would confirm with the 401(k) Recordkeeper (the place you go to see your account balance).

  3. Check out the PFC post below that talks about the benefits of rolling over your old 401(k) plan.

Please note, withdrawing the 401(k) assets will likely result in paying taxes and penalties, so that should be avoided.

I hope this helps! Let us know if you have any other questions!

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#3

Thank you Shane. As always you are very helpful!

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