Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
I currently have a 401K with my current employer and am 100% vested. I am planning on taking a new job that does not offer any retirement plan. I don't like the current investment options in the 401K.

The 401K is a mix of a Roth 401K and a regular 401K, plus the employer match.

I would like to rollover the account into a IRA.

Is is possible to rollover into both a IRA and a Roth IRA so I keep the current mix of pre-tax/post tax.

My understanding is:

Roth 401K -> Roth IRA
regular 401K -> Traditional IRA
employer match -> Traditional IRA.

Is this feasible/advisable?
Print the post Back To Top
No. of Recommendations: 0
It should be, yes, but you will have to wait until you leave the current employer. Is the Employer Match in a separate account from the two 401k's? Since you are fully vested, it should be your money in the Traditional 401k (if tax deferred) or the Roth 401k (if post-tax contribution). My guess is that it is pre-tax, but personally I have not heard of a company match that didn't go into the actual 401k but was held in a separate account. Then again, it's been a long time since I have had a job that offered any retirement savings.

Fuskie
Who suggests taking to your IRA broker to find out the steps you will need to take to roll the cash assets of the retirement savings over to your IRA accounts so that you will be prepared when you do leave your current position...
Print the post Back To Top
No. of Recommendations: 0
Is the Employer Match in a separate account from the two 401k's

I'm a bit confused about this - when I logon to the account everything looks like its in one account. However my quarterly statement gives a % breakdown by my contributions and earnings vs employer match and shows the vested amount (which is 100%). Looks like I'll have to ask my IRA broker for some more logistical details.
Print the post Back To Top
No. of Recommendations: 0
>> I'm a bit confused about this - when I logon to the account everything looks like its in one account. However my quarterly statement gives a % breakdown by my contributions and earnings vs employer match and shows the vested amount (which is 100%). <<

If you're 100% vested in all employer contributions and it's all commingled in one account, then as far as I can see it's mostly a moot distinction. The money is all yours.

Where it can be different is if it's not 100% vested, or if the employer puts their match into a different account (i.e. when they match in company stock this can happen). But it sounds like that's not the case here.

#29
Print the post Back To Top
No. of Recommendations: 0
I believe his question was about the distinction between pretax, Roth and employer matching contributions - and the answer is not dependent on being vested. Most recordkeepers maintain all of the sources in one "account" for investment purposes (although some have started allowing you to invest Roth and pretax funds differently - but that is still a minority of recordkeepers). The recordkeeper knows how much was contributed to each source (Roth, pretax and match) and can, on the fly, calculate the proportion of the one "account" attributable to each. On distributions, the calculation is done, and various amounts (depending on the source) will be treated for tax purposes differently. The distribution will be broken down into appropriate sources so that you can roll over Roth money into a Roth IRA and the pretax (including the match) into a traditional IRA.
Print the post Back To Top
No. of Recommendations: 0
I guess I was confused as tO whether the employer contribution was to the traditional or Roth 401k, or to a separate cash fund.

Fuskie
Who gathers that it is to one of the 401k accounts but is still not clear which...
Print the post Back To Top