401(k) Rollover

[ken-do-nim]

(08-27-2021, 07:54 AM)fenders53 Wrote: I think there may be a brief wait time.  I bet the clock starts on the account's born date?  That's an easy fix.  Just start a ROTH IRA and drop a couple K into it a couple years before retirement and roll yuor employer account into it later.  As the divs are pulled you pay the tax of course. Your CAP gains can compound awhile longer tax free.  

It will work for you.  You just can't gamble too much with this account.  I am allowed to do options but it's more conservative in nature.  They won't let me naked short MRNA lol.

As always, I am not your financial nor your tax advisor.  Neither is Chad but he knows the rules.  

I don't think you are right on that first part.  From this Investopedia article, ""As long as you withdraw money invested in a Roth IRA after the age of 59½—and you owned that account for more than five years—you will pay zero taxes on the withdrawals, even if the withdrawals include dividends""

As to the second point, my existing E*Trade ROTH IRA doesn't have any restrictions I'm aware of.  Chad above mentioned he wasn't allowed to do triple leveraged ETFs in his.  I wonder why my account is different.

So now that I can roll my ROTH 401(k) into my ROTH IRA at age 59.5 (or when I retire), this gets very interesting.  I can use the ROTH IRA for the highest yielding portions of my portfolio (ex ARCC), and not get taxed at all, while the equities in my taxable account like ABBV provide the more conservative (but still respectable) yield. Hmm... this may significantly lower the amount I was expecting to need to acquire for my nest egg. I'll have to run some numbers.

[fenders53]

Yes I misspoke. A ROTH is a ROTH. All proceeds are tax free. Taxes are paid on the way in with few exceptions. My combat zone pay ROTH contributions will never be taxed. There are probably other weird rules here and there.

The more conservative brokers have tighter rules. They don't desire to be Robinhood. They desire to keep clients from gambling with their retirement accounts. In any event the rules are liberal enough for sane retirement investing.

[ChadR]

I have an E*Trade ROTH account. I never said anything about triple leveraged ETFs, it must have been someone else. I honestly don't know if E*Trade will allow it or not since I have never looked into it. Since they don't interest me, I've never spent any time looking into if I could do it or not. E*Trade will let you do basic option trading such as covered calls and cash secured puts. The won't let you do naked calls, but if you want to be naked while selling covered calls, that is OK.

[fenders53]

(08-27-2021, 02:32 PM)ChadR Wrote: I have an E*Trade ROTH account.  I never said anything about triple leveraged ETFs, it must have been someone else.  I honestly don't know if E*Trade will allow it or not since I have never looked into it.  Since they don't interest me, I've never spent any time looking into if I could do it or not.  E*Trade will let you do basic option trading such as covered calls and cash secured puts.  The won't let you do naked calls, but if you want to be naked while selling covered calls, that is OK.

I am pretty certain "house rules" have a lot to do with it and it doesn't always make complete sense.  

I AM allowed to buy $500K worth of out of the money AMC calls expiring in a hour.  Not allowed to go long $5K in SOXL and hold it for a year.  No leveraged ETFS, long or inverse.  I can't sell naked anything in my retirement accounts.  My mother wouldn't let me run with scissors either and I guess that worked out.     I could move my account if it was a big deal to me.  

If want to gamble with small money it's no holds barred in my taxable TD Ameritrade account, and the casino is only a 15 minute drive anyway lol.

[rayray]

personally, imho, i would only transfer money from a tax deferred ira or kplan to a roth only if i could pay the tax bill out of my pocket--i wouldn't want to use retirement dollars to be used to pay taxes for the conversion--just the way i feel about it on a personal level--if i was considering the move myself--i'd rather keep those dollars invested then give them to the tax man--money good even if tax deferred tax man always bad--never good--bad tax man, very bad man as in not good lol

i'm also a big supporter on having many vehicles at disposal

i've been fully funding a ROTH since 1998--all except one year--2004 was a tough one for me

every so often i'll do a fund to fund transfer when the sum is right--it's a kplan to traditional ira

so...i have

two brokerage accounts
two rollover traditional ira's
one roth
one 401kplan
one 403bplan
one inherited traditional ira

[fenders53]

Tax man bad....

Were we supposed to read that in our Trump or Rain Man voice?

[rayray]

(08-28-2021, 10:23 PM)fenders53 Wrote: Tax man bad....

Were we supposed to read that in our Trump or Rain Man voice?  

funny you said that-a good friend of mine who actually passed away 3 years ago...man maybe 4 i can't remember : / anyways use to i'm not sure  i think imitate rain man and that's what i had in my mind...not exactly rain man but my buddy

he woud kind of act that way...

he would get a job and return it with a narrative

"can't be done"

the guys went crazy some where like 30 freakin' years and you mean that's all i had to do?? "can't be done" LOL

a couple of others

i'm sorry i'm doing the best i can

how can one argue with that? not only am i sorry but i'm admitting i'm doing the best to my abilities lol

i'm mediocre and i'm okay with it

it's like saying hey listen don't expect too much the bar is not that high lol

[fenders53]

(08-29-2021, 02:56 AM)rayray Wrote:

(08-28-2021, 10:23 PM)fenders53 Wrote: Tax man bad....

Were we supposed to read that in our Trump or Rain Man voice?  

funny you said that-a good friend of mine who actually passed away 3 years ago...man maybe 4 i can't remember : / anyways use to i'm not sure  i think imitate rain man and that's what i had in my mind...not exactly rain man but my buddy

he woud kind of act that way...

he would get a job and return it with a narrative

"can't be done"

the guys went crazy some where like 30 freakin' years and you mean that's all i had to do?? "can't be done" LOL

a couple of others

i'm sorry i'm doing the best i can

how can one argue with that? not only am i sorry but i'm admitting i'm doing the best to my abilities lol

i'm mediocre and i'm okay with it

it's like saying hey listen don't expect too much the bar is not that high lol

LOL, I dealt with that in the military.  A lot of them would hang around forever until they were finally promoted one too many times, and their peers had to cover for them on important things.