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Personal Investments • 401k Rollover

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My former employer has been bought out by another company and is terminating my old 401k with the bulk of my retirement money. I have 90 days from 12/31 to roll it over.

Few months back I had opened a Roth IRA (ETrade) so I could contribute to my retirement in another way.

Looking at the rollover process there is mention of withholding 20% of my retirement amount, what the hec?

Is there a way to avoid this? Should I open a Traditional IRA and roll into that?

Etrade has something called a "Rollover IRA" will that avoid me being taxed?

Not sure what the best thing to do here is, not sure what kind of tax bracket I'll be in when I retire between SS, my Pension and me and my wife's retirement account.

Thanks in advance for your time and help!
Does your current employer have a 401k? If they do and they accept rollovers, you could move it there.

Otherwise, move it to an IRA. With a custodian-to-custodian transfer to an IRA, you won't need to have them withhold anything. Basically, if that's handled electronically or if you get a check payable to "Your brokerage FBO cbaur88", you avoid the withholding issue.

Statistics: Posted by exodusNH — Thu Dec 19, 2024 12:41 pm — Replies 2 — Views 57



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