so im about to start a new job and I’m considering moving my previous 401ks into my traditional IRA (for convienence and investing options). I will have 3 after I leave this position in a couple of weeks.
As far as I can read it, I’m allowed to rollover my 401k into my traditional IRA with no fees or penalties whereas if I then move it over to my Roth IRA I pay the taxes on the gains. So basically I wouldn’t be taxed or incur any penalties from the 401k to IRA move as long as I leave it in my traditional IRA until I’m 59 and a half years old.
So I figured I’d move my 401ks to my traditional IRA and let it do its thing while contributing my maximum amount to my Roth while I still have not reached the income limits. Once I reach the income limits I’ll switch my contributions back to my traditional IRA.
Do I understand this right?
I am not planning on touching either of my IRAs until I’m retired (I’m in my early 30s) so I just want to ensure I’m not hit with any fees or penalties in the meantime.
As far as I can read it, I’m allowed to rollover my 401k into my traditional IRA with no fees or penalties whereas if I then move it over to my Roth IRA I pay the taxes on the gains. So basically I wouldn’t be taxed or incur any penalties from the 401k to IRA move as long as I leave it in my traditional IRA until I’m 59 and a half years old.
So I figured I’d move my 401ks to my traditional IRA and let it do its thing while contributing my maximum amount to my Roth while I still have not reached the income limits. Once I reach the income limits I’ll switch my contributions back to my traditional IRA.
Do I understand this right?
I am not planning on touching either of my IRAs until I’m retired (I’m in my early 30s) so I just want to ensure I’m not hit with any fees or penalties in the meantime.
