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Best time to draw and rollover funds
09-02-2019, 02:11 PM
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#1
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Recycles dryer sheets
Join Date: Sep 2007
Posts: 318
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Best time to draw and rollover funds
I want to make a draw soon, but I also want to rollover an Employer 401k to an existing Vanguard rollover IRA, if Vanguard will let me do that. I need to make the draw sooner rather than later, so I was wondering what is the best time to do each of those? I know there are a lot of distributions right at the end of December, so is it better to rollover in January?
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09-02-2019, 02:15 PM
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#2
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,264
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Not a lot to go on.
IMO, it doesn't matter much as long as the money is all pre-tax and you don't mind having the income from the draw on your tax return sooner rather than later.
Are you planning to take the draw from the 401k or the IRA? I don't think it matters, but jsut curious.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
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09-02-2019, 02:38 PM
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#3
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Recycles dryer sheets
Join Date: Sep 2007
Posts: 318
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We bought an RV and haven't made any draws yet, but I planned on drawing 3.5% this fall and 3.5% first of the year to pay it off. We have the wiggle room on the income end.
I can take the draw before rolling over, after rollover or from the existing IRA. Makes no difference. I was wanting to collect the dividends and capital gains on the 401k at end of year though and I won't get those if I rollover before then, right? Rollover will probably be going to different funds.
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09-02-2019, 02:51 PM
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#4
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Thinks s/he gets paid by the post
Join Date: Jul 2009
Location: The Beautiful Blue Ridge Mountains
Posts: 2,781
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Are you talking about an RMD?
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09-02-2019, 02:53 PM
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#5
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Recycles dryer sheets
Join Date: Sep 2007
Posts: 318
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Quote:
Originally Posted by GalaxyBoy
Are you talking about an RMD?
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No, have a couple of years yet to go for RMD.
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09-02-2019, 03:00 PM
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#6
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Thinks s/he gets paid by the post
Join Date: Mar 2012
Posts: 3,931
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Why not just do the rollover right now? You can absolutely rollover an existing 401k into an existing rollover IRA.
Do the rollover from Vanguard's side. Assuming they work similar to Fidelity, you just fill out the info on their site, upload your recent statement, and they'll handle everything and it should take no more than two or three weeks.
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09-02-2019, 03:21 PM
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#7
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
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Quote:
Originally Posted by klucich
....I was wanting to collect the dividends and capital gains on the 401k at end of year though and I won't get those if I rollover before then, right? Rollover will probably be going to different funds.
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Yes, you'll get it.... it is effectively included in the NAV (net asset value).
When dividends are paid and capital gains distributions are made the NAV goes down by the amounts paid out so it is all a wash.
The NAV are the fund assets divided by the number of shares... so any dividends that they haven't distributed are included in the fund assets and therefore in the NAV.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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09-02-2019, 04:02 PM
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#8
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Recycles dryer sheets
Join Date: Sep 2007
Posts: 318
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Quote:
Originally Posted by njhowie
Why not just do the rollover right now? You can absolutely rollover an existing 401k into an existing rollover IRA.
Do the rollover from Vanguard's side. Assuming they work similar to Fidelity, you just fill out the info on their site, upload your recent statement, and they'll handle everything and it should take no more than two or three weeks.
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It won't let me do it on Vanguard's side. The Employer 401k is held by Vanguard but I don't have the option of initiating a rollover on the Vanguard site. I have to go through the Plan Administrator.
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09-02-2019, 04:04 PM
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#9
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Recycles dryer sheets
Join Date: Sep 2007
Posts: 318
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Quote:
Originally Posted by pb4uski
Yes, you'll get it.... it is effectively included in the NAV (net asset value).
When dividends are paid and capital gains distributions are made the NAV goes down by the amounts paid out so it is all a wash.
The NAV are the fund assets divided by the number of shares... so any dividends that they haven't distributed are included in the fund assets and therefore in the NAV.
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OK that makes sense. I did some reading about that a while back.
So from what I understand, it really makes no difference when or the sequence I do the draw or rollover, other than the rollover will probably take longer than if I were to just draw from the existing IRA we have on the Vanguard site.
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09-03-2019, 06:30 AM
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#10
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,264
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^^^ You got it.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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09-03-2019, 07:36 AM
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#11
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Recycles dryer sheets
Join Date: Sep 2007
Posts: 318
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Quote:
Originally Posted by pb4uski
^^^ You got it.
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Thanks!
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