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Change of employment and 401k/Roth IRA

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  • Avatar mlc7 
    Participant
    Status: Physician
    Posts: 22
    Joined: 02/18/2018

    I will be changing the employment and have the opportunity to roll my old 401k (mix of traditional and Roth at Vanguard) into new 401K (Fidelity) at the new employer.¬† I also have an option to roll over 401k into IRA which I don’t want to do since that would have tax consequences for back door Roth IRA contributions or just roll over my Roth401k part to Roth IRA.

    Any suggestions or advise on pros and cons of:

    1. rollover of Roth401K portion of current 401k to Roth IRA (held at Vanguard) + rollover of old traditional 401K portion to new 401K and continue making backdoor Roth IRA contributions  or

    2. roll over all 401k [traditional and Roth from Vanguard) to new 401k at Fidelity?

    Thank you as always for your comments and advise

     

     

     

    #179721 Reply
    Avatar Peds 
    Participant
    Status: Physician
    Posts: 3789
    Joined: 01/08/2016

    Yes move the Roth 401.

    #179732 Reply
    jfoxcpacfp jfoxcpacfp 
    Moderator
    Status: Financial Advisor, Accountant, Small Business Owner
    Posts: 7509
    Joined: 01/09/2016

    I prefer option 1, which gives you control of your Roth portion. Regardless of your decision, you can continue with the backdoor Roth maneuver, which I also recommend.

    Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~ 270-247-0555
    https://fox-cpas.com/for-doctors-only/

    #179738 Reply
    Liked by mlc7

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