With short rates at 550 BPS and you at 600, your not going to get called.
yes I am, I have paid NO attention to the 401k for years until today. I always thought I would like to roll it into my Roth ( which I trade in on a couple times a year basis)and pay the tax now because I do fairly respectable with my personal Roth. It's fun building the Roth knowing I will have to pay no tax on withdrawals.
Well, 20 years ago I had a 401K at my first company, and I rolled it into a "rollover IRA". I did that at my second company - into the same rollover IRA. You get whatever investment options your broker offers in a regular IRA - which if your with fidelity or Schwab means pretty much whatever you want. There are some different rules with a Rollover IRA, but that is on the taking it out side - I think. Likely some different tax rules as well - with investment trusts, etc. But for the most part - yes, you can buy individual stocks or bonds or whatever. As always - consult someone smarter than me
This was helpful, thanks. I was self employed most my life, so it was Roth for me. The 401 k was more recent before retirement.Well, 20 years ago I had a 401K at my first company, and I rolled it into a "rollover IRA". I did that at my second company - into the same rollover IRA. You get whatever investment options your broker offers in a regular IRA - which if your with fidelity or Schwab means pretty much whatever you want. There are some different rules with a Rollover IRA, but that is on the taking it out side - I think. Likely some different tax rules as well - with investment trusts, etc. But for the most part - yes, you can buy individual stocks or bonds or whatever. As always - consult someone smarter than me
Having said that - if your happy with your investment options where its at, there is no need to move it.
Well it certainly wasn’t called when the rates were pretty low even after the call date.
I was just looking at the Nasdaq and it lost 33% from the peak in 2021 and gained 45% from the bottom in 2023
As @SC Maintenance said no need to go to a roth IRA, a Rollover/Traditional keeps the money pre-tax (assuming your 401K was pre-tax) and just allows you to have more investment choice. Not being of retirement age, but having rolled over a handful of pre-tax 401ks, no tax consequences as long as you follow the proper steps when rolling over. I have done a handful with TD before it was Schwab and the last one with Fidelity. Fidelity was very helpful even though they had to direct me back to get everything started with the existing institution for the 401K.
FYI no RMDs currently on roth IRAs for the original owner.
For what it is worth, TD --> Fidelity did not take two weeks for me, more like 4 or 5 days including the weekend for us I think.
Open the Fidelity account and pull the money (don’t push from old account)
Yup that's what I was referring to with the transfer of assets page.
Soft landing. So far so good. Ways to go.
Like you, with SS and rental income i dont have withholding. I'm not a tax guy (my darling spouse, the accountant does them), but I do make sure they are overpaid each year to avoid underwithholding penalties. I seem to remember we get hit with some other penalties for not estimating the right amount to pay quarterly.
If you didn't make a ton of money, you wouldn't have much tax to pay.
As far as I can tell, the main difference between a 401K and rollover IRA is the fees (lower in a rollover IRA) and investment choices (way better in a rollover IRA)
Mostly true. I was 1000% lucky while working that Fidelity allowed "Brokeragelink" in our 401K's. We could buy MOST everything except LP's, options, future contracts/commodities - but could buy related ETFs of these.
