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 ...
user avatar
  • 23.7k
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% ...
user avatar
  • 2,528
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 ...
user avatar
  • 50.4k
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 ...
user avatar
  • 2,429
11 votes
Accepted

Undo 401k to IRA rollover?

Probably not. You've left your employer, so you aren't eligible to contribute to the 401(k) anymore. After you've left, they are required to keep your account open as long as you like, but after you'...
user avatar
11 votes
Accepted

Old 401k investment choices: Cash it out, move it elsewhere?

I would create a "Rollover IRA". These IRAs are designed to take funds from a 401k and allow you to invest them without incurring a cash out penalty nor a tax due. You will have more choices than ...
user avatar
  • 17.2k
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 ...
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 ...
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 ...
user avatar
  • 9,038
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....
user avatar
  • 20.8k
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 ...
user avatar
  • 50.4k
7 votes

Multi-year delayed 401k payout check cash, which was originally a rollover into a new plan

Did I do anything wrong by cashing a check made out to "trustee of <401k plan> FBO ", and if so how can I fix it? I thought I was just getting a termination payout of the balance. Yes, you did....
user avatar
  • 127k
7 votes

Can I roll my current Roth IRA in my name and my spouse's name into a Roth IRA that is only in my spouse's name?

No, you cannot roll over any money or assets in your IRA (of any kind) into an IRA of any kind in the name of your spouse. That I in IRA stands for Individual. As mhoran_psprep's comment asks, if by ...
user avatar
7 votes
Accepted

Clarification on 2015 IRA Rollover Limits

From your first link: IRS.gov: IRA One-Rollover-Per-Year-Rule IRA One-Rollover-Per-Year Rule Beginning in 2015, you can make only one rollover from an IRA to another (or the same) IRA in any ...
user avatar
7 votes
Accepted

Rollover 401k into Roth IRA?

For #1, I see no advantage in putting money from your non-retirement savings into a Roth just for the purpose of using it as a down payment on your house. Why not just put the $5.5K directly toward ...
user avatar
  • 3,481
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 ...
user avatar
  • 23.7k
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 ...
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 ...
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 ...
user avatar
6 votes

Undo 401k to IRA rollover?

It is unlikely that you can undo the rollover and put money back into the 401(k) plan sponsored by your ex-employer, and even more so if your departure was acrimonious. You could, of course, always ...
user avatar
6 votes
Accepted

If you rollover a Roth 401k to Roth IRA and immediately withdraw it, is there any tax or penalty?

You're thinking that by rolling over your Roth 401(k) to Roth IRA the whole amount becomes "contribution". That is not so, you're not losing the characteristics of the amounts within the account. The ...
user avatar
  • 127k
6 votes

Does a Roth 401(k) rolled into a Roth IRA count toward the annual contribution limit?

Rollovers do not count as contributions. It doesn't matter if they're Roth or not.
user avatar
  • 127k
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).
user avatar
  • 3,481
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 ...
user avatar
  • 8,231
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 ...
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 ...
user avatar
  • 6,199
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 ...
user avatar
  • 28k
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 ...
user avatar
  • 113k
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.
user avatar

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