401k to IRA

[You_Know_Who]

Any pitfalls ... FYI nt contributing to current 401K as of now but still with same employer.

[Spartan]

if still with same employer..

u cannot take out ur 401K and move it to IRA...since it is considered as whole withdrawls..and blocked by majority of companies

[Edhokati]

2 minutes ago, Spartan said:

if still with same employer..

u cannot take out ur 401K and move it to IRA...since it is considered as whole withdrawls..and blocked by majority of companies

Prev employer daggara 401k contributes chesa.

 

kotta vadi daggara ledu. Do not contributing now.

patha 401k account ni emi cheyyalo telidu.

 

what options I have??

 

[Spartan]

Just now, Edhokati said:

Prev employer daggara 401k contributes chesa.

 

kotta vadi daggara ledu. Do not contributing now.

patha 401k account ni emi cheyyalo telidu.

 

what options I have??

 

1) keep it as it is and wait..

2) take it out, pay tax and convert it to IRA. ( u will be paying more tax in this case)

[50Paise]

Just now, Spartan said:

1) keep it as it is and wait..

2) take it out, pay tax and convert it to IRA. ( u will be paying more tax in this case)

You can directly move funds from old 401k to IRA without paying tax. Pick low cost IRA , open account, initiate transfer. Migathadi vallu chuskuntaru. 

[You_Know_Who]

7 minutes ago, Spartan said:

if still with same employer..

u cannot take out ur 401K and move it to IRA...since it is considered as whole withdrawls..and blocked by majority of companies

please see this

 

https://www.ameriprise.com/research-market-insights/financial-articles/retirement/should-you-roll-over-401k-to-ira-while-still-working/

 

am i missing anything here 

[Spartan]

1 minute ago, 50Paise said:

You can directly move funds from old 401k to IRA without paying tax. Pick low cost IRA , open account, initiate transfer. Migathadi vallu chuskuntaru. 

good to know. i thought we get double taxed there..

 

[Spartan]

2 minutes ago, You_Know_Who said:

please see this

 

https://www.ameriprise.com/research-market-insights/financial-articles/retirement/should-you-roll-over-401k-to-ira-while-still-working/

 

am i missing anything here 

seems like i was wrong with `tax` point...

yeah if u feel u get better returns in IRA..then u can make that rollover call.

[Spartan]

https://www.rothira.com/what-is-a-401k-to-ira-rollover

[You_Know_Who]

29 minutes ago, Spartan said:

seems like i was wrong with `tax` point...

yeah if u feel u get better returns in IRA..then u can make that rollover call.

better returns ante... basically im not contributing to 401k and dont want to do it in the near future...but have some balance there...

401k charges lo mottam potondi 

[phatposts]

41 minutes ago, Spartan said:

1) keep it as it is and wait..

2) take it out, pay tax and convert it to IRA. ( u will be paying more tax in this case)

Take it out is different from converting to IRA. I think you are referring to RothIRA vs Traditional IRA

Roth is after tax, traditional IRA is pretax (similar to 401k)

I personally like to convert 401k to IRA (Traditional) any given day. 

IRA expands the options to invest. You can be aggressive or conservative based on your preferences. You can even buy straight stocks with IRA which you cannot do using 401K.

What are the fund expense ratios on the options you have invested in the 401k you have?

[Edhokati]

8 minutes ago, You_Know_Who said:

better returns ante... basically im not contributing to 401k and dont want to do it in the near future...but have some balance there...

401k charges lo mottam potondi 

Em charges?

[You_Know_Who]

1 minute ago, Edhokati said:

Em charges?

401 maintenance charges. vachey returns aa fees ke potunai.. so net profit almost nil

[You_Know_Who]

2 minutes ago, phatposts said:

Take it out is different from converting to IRA. I think you are referring to RothIRA vs Traditional IRA

Roth is after tax, traditional IRA is pretax (similar to 401k)

I personally like to convert 401k to IRA (Traditional) any given day. 

IRA expands the options to invest. You can be aggressive or conservative based on your preferences. You can even buy straight stocks with IRA which you cannot do using 401K.

What are the fund expense ratios on the options you have invested in the 401k you have?

+1  

I read that 401K to Traditional IRA will defer taxes.. the term "Direct Rollover" is the key ani chusa

[Spartan]

40 minutes ago, You_Know_Who said:

better returns ante... basically im not contributing to 401k and dont want to do it in the near future...but have some balance there...

401k charges lo mottam potondi 

2% max kada vallu charge chesedi..

arent u getting even 2% returns...?