My previous employer offered both a Roth and a Traditional 401k (unclear to me if these are technically separate accounts... as far as I was functionally aware, I had one 401k account, which could have contributions split between Roth and traditional). I split my contributions into these roughly 50/50. I have recently left this employer and wish to roll over the 401ks into IRAs. I have a few questions related to this:
- Since the 401k is half traditional and half Roth, does this mean I need a traditional IRA to receive the rollover of the former, and a Roth IRA to receive the rollover of the latter? Or can I just roll over the entirety of the 401k into a Roth IRA?
- Since this would be a rollover, not a contribution, the rollover amount is not subject to any IRA yearly contribution cap, nor would it be subject to income limits on a Roth IRA contribution (ie normally, if I make over $137k, I can't contribute to a Roth IRA), right?
- What happens to my specific funds? My employer had only a set list of funds in which I could contribute. Now that they will be rolled over, I can elect to sell those funds without tax/penalty (right?) and allocate them to a different set of securities still within the IRA?