If I do not withdraw and instead transfer funds directly, will I lose money to tax? Is it possible to rollover from a 410k into a ROTH IRA? It would be nice to start with more than $0 in my new ROTH IRA.
Thank you for your question! You will not have any tax consequences if you move the funds from a traditional 401k to a traditional IRA. It’s important to work closely with your benefit administrator (the site you go to check your 401k balance) and ask them about the process of moving the money into a different retirement account. Each administrator has a slightly different process.
If you are trying to move money from a traditional 401k to a Roth IRA, then there is a tax consequence since you would be taking pre-tax money and moving into an after-tax account.
I hope this is helpful. Keep us posted if there are any other questions!
Very helpful thank you!