Confused About Rolling Over My Roth 401K to IRA
Main Problem:
- Luke is confused about rolling over his Roth 401K to a Fidelity Roth IRA, specifically regarding the destination accounts for pre-tax and after-tax assets.
Solutions Discussed:
- Typically, pre-tax assets from a 401(k) should be rolled into a Traditional IRA, while after-tax assets can go into a Roth IRA without tax consequences.
- It’s important to consult with a tax professional for personalized advice on potential tax implications when rolling over funds.
- Luke can verify if he has pre-tax money in his Roth 401(k) by checking contribution sources on the NetBenefits website.
- Employer contributions might be pre-tax and could be subject to a vesting schedule, which means he may lose those contributions if he is not vested.
- For specific plan details, reviewing the Summary Plan Description (SPD) and contacting the Workplace team for assistance is recommended.
Here’s the full thread