Guideline 401K to Schwab IRA


I have a guideline 401k. That money is split up between a traditional 401K allocation and Roth 401K allocation.

When the 401k plan was started I had no knowledge of the difference between the traditional/roth 401k and the majority of the money was placed in the Roth 401K.

Due to my household’s income, I am not eligible for a Roth IRA.

The company is being sold and the 401K is being shut down and I want to rollover the 401k to my Schwab IRA account and move it from Guideline.

What are the implications of this Roth 401K allocation since I am unable to have a Roth IRA? I know I can just move the traditional 401K funds to my traditional 401k.

Sorry if this is confusing!

Hey @mstrofsomething

Short answer is the income limits do not apply to rollovers. So you can roll money into a Roth IRA regardless of your income.

If you haven’t already checked it out, PFC has a Facebook Group where there are a lot of people that answer questions. Here is the link!

I hope this helps!