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Question re: rolling funds from Megacorp
Old 06-12-2019, 10:46 AM   #1
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Question re: rolling funds from Megacorp

I want to roll over a small lump sum pension and my 401k from Mega to Vanguard after my last day of employment, 7/5. I currently have one rollover account at VG from a previous employer. What would you recommend for account setup at VG to accept these funds?

A. Should I roll over both the lump sum pension and the 401k into the existing VG rollover account? Is that even allowed?

B. Should I roll over the lump sum pension into a new VG rollover account and do the same for the 401k into its own rollover account?

Btw, I won't be taking monthly payments from the lump sum pension because the amount is less than $20k.

The attached screenshot shows the different contribution types in my 401k. Do they affect what type of account I roll them into?
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File Type: jpg Contribution Types.jpg (23.3 KB, 12 views)

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Old 06-12-2019, 11:16 AM   #2
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I transferred payouts from 3 employers into one rollover account. To date, there hasn’t been a need to keep separate track of any of them as they were all treated the same for tax purposes. The benefit of combining was I didn’t need to keep track of 2 small portfolios in addition to the big one.

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Old 06-12-2019, 11:25 AM   #3
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Even though my rollover included many types of funds, I spelled out specific instruction to the plan admin as to what I wanted to with each subset of the whole account. The company stock (ESOP) I cashed out using NUA to lower the tax bite, some after-tax 401a contributions I took as cash, and all the pretax contributions and untaxed earnings I did a trustee-to-trustee rollover to make it seamless and tax-free. Once under my control, I made a visit to my local Fido office to redistribute everything into 3 new funds within my existing account and rollover IRA.
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Old 06-12-2019, 11:39 AM   #4
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Talk with Vanguard, but I would roll both the lump sum and the 401k into the existing Vanguard tIRA. Before-tax money.

Above assumes that the existing tIRA is all before-tax or deductible IRA money.
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