Skip to main content
57 votes

I have $3500 in Rollover IRA. Should I withdraw it early and pay off my credit card debt?

Do not use your IRA to pay off this debt! If the penalties are indeed as high as you state, it's like paying almost 50% interest on your debt! Your $3500 balance is real money. You can consolidate ...
Rocky's user avatar
  • 24.1k
13 votes

I have $3500 in Rollover IRA. Should I withdraw it early and pay off my credit card debt?

Do not use this money to pay off debt. As others have stated, this would be a huge waste of money. Further, how do you have that money invested inside your IRA? The stock market is up roughly 50% ...
Kevin's user avatar
  • 2,602
13 votes
Accepted

Where can I transfer rollover IRA funds to without it becoming income?

You will need to move it to a Traditional IRA if you want to avoid incurring any taxes in the current year. A Roth IRA is for after tax money. Also, you need to be very careful about how you do the ...
JohnFx's user avatar
  • 53.1k
12 votes

Roll-over my old 401k from Fidelity to Vanguard

Direct roll-overs / trustee to trustee transfers are typically initiated by the receiving institution. Therefore you need to work with Vanguard. They will have a form in which you provide them with ...
Eric Johnson's user avatar
  • 2,427
10 votes
Accepted

Rollover Roth 401(k) when not eligible for Roth IRA

Your income may be too high to make a new deposit into a Roth IRA, but that is not what you are trying to do. Regardless of your income, you are allowed to create the new account to either receive ...
JTP - Apologise to Monica's user avatar
9 votes

I have $3500 in Rollover IRA. Should I withdraw it early and pay off my credit card debt?

You are not looking at this correctly. The entire premise of a tax privileged retirement account is for long term growth. The "rule of 72" says that at 10% return your retirement funds will double ...
James's user avatar
  • 364
9 votes

Locked out of my IRA due to incorrect date of birth on account

The Problem You obviously have a legal right to control over the IRA. However, in deciding how to get to a position whereby you can reassert that control, it will help to consider things from their ...
TripeHound's user avatar
  • 9,170
8 votes

Can't withdraw from 401k because plan trustee can't be found

According to this site: If you think the plan trustees or others responsible for investing your pension money have been violating the rules, you should call or write the nearest field office of the U....
Brythan's user avatar
  • 21k
8 votes
Accepted

What happens to investments inside a 401(k) when rolling it over?

It is very uncommon that stocks would be directly transferred from a 401(k) to an IRA or another company's 401(k) during a rollover. Usually the stocks are converted to cash at the current market ...
JohnFx's user avatar
  • 53.1k
7 votes
Accepted

Help me understand this sentence on a 401(k) distribution / rollover form

The proper answer is "no". The form is asking if the reason for the payment is that the (former) employer terminated the entire benefit plan (i.e., for everyone). This is not the case, you are simply ...
Rocky's user avatar
  • 24.1k
7 votes
Accepted

How can I roll-over a 401(k) to a different person?

As far as I know (and I have looked into this due to my own IRA woes) the only ways to transfer ownership of a 401(k) are: cash it out and pay any applicable tax and penalties; to the named ...
Rupert Morrish's user avatar
7 votes
Accepted

I have a traditional IRA. Can I rollover my 401k into that account or do I need to make a new rollover-traditional-ira?

The answer depends on the IRA custodian. Once upon a time, Rollover IRAs were kept distinct from Traditional IRAs because the money in the Rollover IRA was eligible to be rolled over once again into ...
Dilip Sarwate's user avatar
7 votes

401k rollover being held up by former employer

Retirement plans and other benefits are the responsibility of the US Department of Labor (DOL). They published a list of Ten Warnings Signs That Your 401(k) Contributions Are Being Misused two of ...
mhoran_psprep's user avatar
7 votes
Accepted

Move money from former employer's 401k to Roth IRA and Rollover IRA

Yes, it is. Your 401k plan at Vanguard is required to differentiate between pre-tax contributions and earnings, Roth contributions, and Roth earnings. When you request a rollover, you'll designate an ...
Stan H's user avatar
  • 7,551
6 votes

Is there a downside to dropping out of my 401(k)?

One possible downside is contribution limit. The 401K contribution limit is $18,000 for 2016, which is more than three times the limit for IRA contributions ($5,500).
Phil Sandler's user avatar
  • 3,571
6 votes

401k mistaken rollover into cash account

Here's the detailed section of IRS Pub 590 It looks like you intended to have a "trustee to trustee conversion", but the receiving trustee dropped their ball. The bad news is, a "rollover ...
user662852's user avatar
  • 8,389
6 votes
Accepted

Why do I need a rollover IRA?

A long time ago, in a galaxy far far away, Rollover IRAs were used for funds that came from (were rolled over from) a 401(k) account or a 403(b) account. All that money (including any earnings in the ...
Dilip Sarwate's user avatar
6 votes
Accepted

My 401k failed the nondiscrimination test -- how to avoid taxable distribution?

Executing a rollover won't let you keep an excess contribution in tax-advantaged status. Corrective distributions are not really distributions at all; they undo contributions. In particular, they ...
Ben Voigt's user avatar
  • 6,788
6 votes

Is it possible to roll a Roth IRA into a traditional IRA?

No, you cannot convert or roll over a Roth IRA directly to a traditional IRA. At best, you could withdraw funds from the Roth IRA and contribute them to a traditional IRA. This is mostly pointless ...
nanoman's user avatar
  • 30.2k
6 votes
Accepted

401k direct rollover to existing IRA?

From the IRS's point of view, you can use an existing IRA. The instructions may just assume that the reader does not already have an IRA, and hopefully the benefits department knows how to set up the ...
D Stanley's user avatar
  • 137k
6 votes
Accepted

Contribution to rollover IRA in 2020

The $7,000 limit is across both flavors of IRA. Since you’ve deposited $7,000 already, you’re done. You should look to see what your 2021 plans are, and deposit for 2021 if you wish.
JTP - Apologise to Monica's user avatar
5 votes

Can't withdraw from 401k because plan trustee can't be found

I think the best advice you could get would be to find a lawyer. If that foreign company has any presence in the US, they should be the ones signing off as the successor, otherwise you may find ...
littleadv's user avatar
  • 177k
5 votes

Roll-over my old 401k from Fidelity to Vanguard

I don't really see the big deal in taking the check. Fidelity will issue you a check, made payable to VANGUARD FBO [Your Name]. All you have to do is simply hand the check over to Vanguard to deposit ...
NickyTheWrench's user avatar
5 votes
Accepted

What are the limitations on rollovers to an IRA?

Are there any restrictions on the types of the accounts that can be rolled over? Yes only qualified accounts can be put into a rollover. Is there a limit to the number of accounts that can be ...
Pete B.'s user avatar
  • 76.7k
5 votes

Roth IRA Rollover Transferred Twice?

Contact brokerage B's support. They'll fix it and there'll be no legal or tax implications, unless you do something dumb like cash it out before they notice.
ceejayoz's user avatar
  • 2,564
5 votes

Where can I transfer rollover IRA funds to without it becoming income?

Yes, you can move it to a Traditional IRA per JohnFx's answer without incurring penalties. However, one big thing to note is that if a future employer offers a 401k and you wish to move your money ...
MonkeyZeus's user avatar
  • 8,473
5 votes
Accepted

Is it possible to to rollover 401K into an IRA account multiple times with different employers?

I do not believe there is any real limitation. This IRS web page is instructive. Note that the limit of one rollover per year appears to apply when you have received a distribution from another IRA ...
Peter K.'s user avatar
  • 3,963
5 votes
Accepted

Can I roll over my Roth IRA into 401(k), and should I?

No, you can't do this, even if your 401(k) has a Roth option. See the IRS's Rollover Chart, noting the 'No' on the top-right for rolling a Roth IRA into a Roth 401(k). But to be honest, you probably ...
Craig W's user avatar
  • 15.9k
5 votes

Can I regularly direct funds to a different retirement account?

Generally no, you can't do "in-service" transfers out of your 401(k), but check with your benefits department to see if your company is an exception. You might also let them know your ...
D Stanley's user avatar
  • 137k

Only top scored, non community-wiki answers of a minimum length are eligible