[USER]

Curious what others would do in my situation. Over 100k in my previous company 401k plan. Should I transfer to a roth IRA? What percentage would the fees be?

How would doing this impact me at tax season?

[Michelle]

Ok so that’s not the only option. And I would not transfer a traditional 401k to a Roth IRA, you’d be acting like you earned an extra $100k for the year!!!

You could roll it to your new 401k. Or you could roll to a traditional/rollover IRA

[Annette]

Because everyone’s financial health is different, it maybe worthwhile to talk to several financial advisors to get correct information for your situation.

[Lea]

You’ll be charged taxes on the amount rolled into a Roth, since you’re going from a pre tax account to a post tax account. You may be able spread the pain over a few years.

My advice is to call whatever financial firm you’ll be transferring to and see if you can get a consultation.

If you’re retirement is far enough out, you’ll recover the taxes paid to transfer.

If retirement is too close, you may not recover enough to feel comfortable.

I always recommend reading and researching on your own also, so you know what’s best for you. Good luck!

[Lisa]

I would transfer it to a traditional IRA. Then I would look at my yearly taxable income to see how much I could convert this year without bumping up to a higher tax bracket. You will have to pay taxes on the amount you convert.

You need to allow time to open a ROTH to roll the amount into so I would immediately roll it into a traditional IRA, set up a ROTH IRA and plan to roll it in Nov.

You can do this over the next several years. We did ours at the end of each year so the taxes on the rollover would come out of our refund and we would not have to pull taxes from the rollover and we were not in danger of owing the taxes in an earlier quarter ( because it was done at the end of the year.)

[Diane]

If you transfer to an Traditional IRA there won’t be tax implications until you withdraw it..just do it directly from one to the other.

[Pamela]

If you transfer to a Roth from a traditional 401k there will be tax implications that can be spread out over a few years on ur taxes.

You didn’t pay tax when you put in 401k but with transfer to Roth taxes will need to be paid on what was put in the 401k

[Author]

Posts