401k rollover to IRA upon retirement
I am a physician who has both an 401k and a totally Roth IRA. As an owner of the corporation, I can continue to keep my 401k funds in the corporate 401k if I wish even if I’m no longer contributing to it after retirement. I have both pre and post (ROTH) tax contributions in the 401k. When I retire, can I roll only my ROTH portion of the 401k into the ROTH IRA and keep to pre-tax portion of the 401k only in the 401k account, avoid tax implications and draw off of this portion of the account only if I choose or must I rollover BOTH the pre and post tax portions of the 401k to an IRA if I choose to make a conversion? Thanks in advance.
Permalink Submitted by Alan - IRA critic on Wed, 2020-10-07 21:51
That is fine with the IRS, but distribution options after you retire depend on the plan provisions. Only thing you are guaranteed is that you can request a total direct rollover or distribution. Typically, a retiree would request a total direct rollover of the Roth portion to a Roth IRA and pre tax account to a TIRA which would involve no current taxes due, and from which incremental conversions could be done from the TIRA each year if desired.