Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 07-18-2014, 02:56 PM   #41
Recycles dryer sheets
 
Join Date: Jul 2009
Posts: 296
Hmmm ... went to Fairmark - great information and well presented.

So, general process if I can very roughly state it, is to:
1. Roll combined 401K (including both pre-tax contributions and earnings, and after-tax contributions and earnings) into a Vanguard IRA
2. Roll the pre-tax contributions and their earnings, plus the earnings from the after-tax contributions BACK to the employer 401K (leaving ONLY the after-tax contributions (BASIS) - assuming the employer 401K will accept them
3. In my case, since original intent was to get all funds out of megacorp 401K and into an easier to manage and lower expense structure, I would then transfer the 401K BACK to Vanguard into a new rollover IRA - this is the end of my process to establish basis and separate tracking.

Does this sound about right?
__________________

__________________
stephenson is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 07-18-2014, 03:52 PM   #42
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
 
Join Date: Mar 2007
Posts: 9,874
Quote:
Originally Posted by stephenson View Post
Hmmm ... went to Fairmark - great information and well presented.

So, general process if I can very roughly state it, is to:
1. Roll combined 401K (including both pre-tax contributions and earnings, and after-tax contributions and earnings) into a Vanguard IRA
2. Roll the pre-tax contributions and their earnings, plus the earnings from the after-tax contributions BACK to the employer 401K (leaving ONLY the after-tax contributions (BASIS) - assuming the employer 401K will accept them
3. In my case, since original intent was to get all funds out of megacorp 401K and into an easier to manage and lower expense structure, I would then transfer the 401K BACK to Vanguard into a new rollover IRA - this is the end of my process to establish basis and separate tracking.

Does this sound about right?
Maybe that's the drill now. I had 401(k) cut me two checks and I deposited them into rollover IRA and a Roth. This was a few years ago and the whole procedure was nebulous.
__________________

__________________
Yes, I have achieved work / life balance.
travelover is offline   Reply With Quote
Old 07-18-2014, 05:38 PM   #43
Thinks s/he gets paid by the post
 
Join Date: Jul 2005
Posts: 3,862
Quote:
Originally Posted by travelover View Post
Maybe that's the drill now. I had 401(k) cut me two checks and I deposited them into rollover IRA and a Roth. This was a few years ago and the whole procedure was nebulous.
That's roughly what I did 7 years ago, except I just pocketed the $600 or so after-tax dollars.
__________________
Animorph is offline   Reply With Quote
Old 07-18-2014, 07:21 PM   #44
Thinks s/he gets paid by the post
 
Join Date: Nov 2009
Posts: 3,856
When I liquidated my 401k back in 2008 upon ERing, I took my after-tax contributions, about $14k, in cash, while rolling anything pretax or earnings into an IRA. Neither was a taxable event, and I used the $14k toward the big tax bill from cashing out the company stock using NUA.
__________________
Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.

"I want my money working for me instead of me working for my money!"
scrabbler1 is offline   Reply With Quote
Old 07-18-2014, 08:44 PM   #45
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 16,407
Quote:
Originally Posted by 2B View Post
It's a no brainer to me to split them into a pre-tax and Roth IRAs. Having a comingled IRA is a hassle for tax purposes. The mix confounds your methodolgy of making withdrawls if you don't separate now.
+1 I was unaware of this option and just got a check for the after-tax funds but fortunately it wasn't a lot of money.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
pb4uski is offline   Reply With Quote
Old 07-19-2014, 12:13 AM   #46
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
 
Join Date: Mar 2007
Posts: 9,874
Quote:
Originally Posted by Animorph View Post
That's roughly what I did 7 years ago, except I just pocketed the $600 or so after-tax dollars.
In my case, after tax was $125K, so it was worth the hoop jumping to get that into a Roth.
__________________

__________________
Yes, I have achieved work / life balance.
travelover is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
To Move IRA -> 401K-i or Not To Move? ... wanaberetiree FIRE and Money 12 10-28-2013 10:00 PM
Move over Cliff, Move Over Carlos- Here Comes Mariah! haha Other topics 4 05-29-2008 03:14 PM
Can a company off both 401k and Roth 401k bode316 Young Dreamers 11 01-22-2008 12:40 PM
New Company has no 401K - what to do with old 401k? farmboy42 Young Dreamers 9 08-22-2007 09:19 PM
Good move or Bad move?? JPatrick FIRE and Money 46 07-05-2005 08:25 PM

 

 
All times are GMT -6. The time now is 01:03 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.