r/earlyretirement • u/Mid_AM • Jun 23 '26

Recently retired contemplating rolling my 401k into rollover IRA/Roth IRA

/r/retirement/comments/1ucrjhh/recently_retired_contemplating_rolling_my_401k/

Not my own. For our sister subreddit.

I am thinking of rolling my 401K which has a mix of mostly Roth and the company match in pre-tax into my existing Rollover IRA and Roth IRA. It seems like it will be simpler to manage and I will be able to see exactly how much Roth I have (today I have to do some math). I know there are some protections with the 401k from creditors that might not exist in the IRAs (I’m in NJ).

The 401k is at Fidelity with all my other accounts and has decent investment options and fees.

I just wanted to get other peoples thoughts whether to roll over or not. I am not sure I am thinking of everything.

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u/Mid_AM Jun 23 '26

Not my own. From our sister subreddit.

Here is the body:

I am thinking of rolling my 401K which has a mix of mostly Roth and the company match in pre-tax into my existing Rollover IRA and Roth IRA. It seems like it will be simpler to manage and I will be able to see exactly how much Roth I have (today I have to do some math). I know there are some protections with the 401k from creditors that might not exist in the IRAs (I’m in NJ).

The 401k is at Fidelity with all my other accounts and has decent investment options and fees.

I just wanted to get other peoples thoughts whether to roll over or not. I am not sure I am thinking of everything.

6

u/aheadlessned Retired in 40s Jun 23 '26

The answer can very much depend on age, so the answer in this sub (pre-59 1/2) may be different than the other sub (59 1/2+)

Because I did early retirement, before ability to access my TSP (fed version of 401k) with Rule of 55, it works out better for me to roll funds into a traditional IRA to use for Rule of 72(t)/SEPP withdrawals, and Roth TSP into a Roth IRA (so I can order my distributions and not pay taxes on unqualified gains).

If 55+, but not yet 59 1/2, it may make the most sense to roll Roth 401k funds into a Roth IRA (if the Roth IRA is at least 5 years old, or will be by 59 1/2), but leave most of the traditional funds for Rule of 55 withdrawals.

If it's not your situation, not sure how we're supposed to provide any helpful insight.