RedlineParticipantStatus: PhysicianPosts: 1Joined: 09/09/2019
I recently graduated from a residency program with the University of California system and thus am left with a DCP (401 (a)) Fidelity retirement account. The account is 7.5% of pre-tax income over the past 4 years with no employer matching. I have about $21,000 in this account. I am currently finishing a one-year fellowship and my current total income tax rate is 22%. I do not see myself returning to the UC system and would like to roll-over my 401 (a) to my Roth-IRA with Vanguard.
1. Is this a wise move to roll-over into my Roth-IRA instead of just leaving it alone?
2. Regarding taxes – Will I have to pay 22% taxes on the 21k if I rollover to Roth. If I do the rollover this year (2019) will these taxes be due when I get file my tax-return in April 2020?
3. Is it possible to use the money in the 401 (a) account to pay for the taxes as I unfortunately do not have enough savings to cover the tax amount? Is this wise?
Thank you for all that you do!September 8, 2019 at 5:41 pm MST #244784PedsModeratorStatus: PhysicianPosts: 4405Joined: 01/08/2016