6

If I have a 401k that has both Roth and Traditional contributions, then leave the job and want to roll it into another employer's 401k will that be possible? Will there be complications because of having both Roth and Traditional contributions?

1
6

As long as the new 401(k) supports incoming rollovers, and allows both pre-tax and Roth contributions, it should be no problem. Plenty of people have both traditional and Roth money in their 401(k), so this should be a common scenario for the old and new 401(k)s to deal with.

7

Many 401(k) programs do allow people to roll money into the 401(k). The company running the program should be able to guide you through the process.

As long as the money doesn't change type, there should be no tax impact. Sometimes the money can be transferred directly, in other cases they have to send a check made out to the new program. You don't want the check made out to you, though sometimes they want to send the check to you and then you mail it to the new 401(k) administrator. The new company should be able to explain what they need.

One of by kids did this last year. The old program processed it as two transactions: Roth and non-Roth. The new company was able to work with the two checks.

If the new company doesn't allow employees to roll funds into the 401(k) you can either keep in the funds in the old program, or move them into a Roth and Traditional IRA. Sometimes if the balance is under $5,000 the old company will force you to rollover the funds.

1
  • you might consider rolling them over to a brokerage like vanguard or fidelity where you will not be limited to the investments that your company dictates. You may have lower fees as well.
    – piton
    Aug 16 at 19:10

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.