Deliberating 401(k)>IRA transfer

[pb4uski]

Quote:

Originally Posted by jebmke Just make sure there aren't any adverse consequences at the state level if you have state income tax. In my state (MD), qualified pension distributions, which include 401(k) distributions are eligible for a pension exclusion on state income taxes once you turn 65. IRA distributions are not eligible for this exclusion. If you roll money out of a 401(k) or other qualified plan to an IRA you lose the benefit of this exclusion.

Interesting angle, I'll have to check that out.

[Sirka]

Quote:

Originally Posted by brewer12345 Before you conclude that the rollover is a go, take a moment tobriefly consider whether there are any special features of your current 401k

+1
I would make sure that 100% is vested before you make the move. I got burned with that.

[Sirka]

Quote:

Originally Posted by pb4uski I just wanted to see if there was anything that I was overlooking. In any event, I need to wait until I get my final paycheck on 2/29 since it will be going 100% into the 401k before I initiate the transfer.

I would talk with the 401k administrator about the transfer options and pick up the necessary forms they may have. I did that a year later and then I had to email back and forth.