After tax 401k: rollover to Roth IRA or Roth 401k
Aug 24, 2020
17 Comments
There is a fee to rollover to Roth IRA and I need to call fidelity to make it happen. For rollover to Roth 401k, there is an option to automatically do that for each paycheck. The latter seems more convenient.
I do not need the funds which I contribute in my after 401k. What is the benefit of rolling over to Roth IRA?
If you do rollover to Roth IRA, do you also rollover the gains and pay tax on it?
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Specifically -
“After-tax contributions to your workplace plan can be withdrawn without taxes or penalties. Any earnings on those after-tax contributions are considered pre-tax balances—so taxes would have to be paid on withdrawals of the earnings (unless they are rolled over to an IRA) and there may be a 10% penalty if you're under age 59½.”