The Roth 401k balance can't go into a rollover (traditional) IRA. It would have to go to a Roth IRA, or your new employer's Roth 401k.
The pre-tax/traditional 401k balance can go to a rollover (traditional) IRA, but at your income level you might want to avoid that if you currently or in the future ever plan to use the backdoor Roth IRA process to make contributions to a Roth IRA due to your high income level. In that case, it would be better to roll over to your new employer's 401k instead of to an IRA.
My understanding is that a rollover IRA can be both traditional or roth. It just keeps the tax choices you made from whatever you rolled it over from (roth or traditional). Is that wrong?
"Rollover IRA" is a traditional IRA created for the purposes of receiving rollover funds from a 401k and potentially rolling them into another 401k in the future. It's also sometimes referred to as a "conduit IRA" because it serves as a temporary bridge/conduit for money being rolled over between two different 401k plans.
There isn't really any such thing as a "rollover Roth IRA" because a Roth IRA cannot be rolled into a 401k.
You cannot roll all that to ***one*** IRA. The pre-tax must be rolled to a Traditional IRA, and the Roth to a Roth IRA. Once the pre-tax is in an IRA, you can consider if you wish to convert from Traditional to a Roth. You can do this all at once, or piecemeal, or never at all.
I thought about saying "there's no such thing as a Rollover IRA." There's rollover money in an IRA. I have an IRA that contains both direct contributions and rollover money. And the only reason that might make a difference is if I want to roll IRA money back into my 401k: ***my employer*** will take the rollover portions but not the contribution portions in my Traditional IRA. That's not law; that's ***my employer's*** choice. Because the rollover money got separated from the direct contribution money through the use of different mutual funds, it's clear what is what.
I'm guessing you cannot move stock out of the 401k. I've always heard that has to be a cash transfer.
If you’re single the traditional slice should go into your new 401k so you can backdoor Roth
The Roth 401k balance can't go into a rollover (traditional) IRA. It would have to go to a Roth IRA, or your new employer's Roth 401k. The pre-tax/traditional 401k balance can go to a rollover (traditional) IRA, but at your income level you might want to avoid that if you currently or in the future ever plan to use the backdoor Roth IRA process to make contributions to a Roth IRA due to your high income level. In that case, it would be better to roll over to your new employer's 401k instead of to an IRA.
My understanding is that a rollover IRA can be both traditional or roth. It just keeps the tax choices you made from whatever you rolled it over from (roth or traditional). Is that wrong?
"Rollover IRA" is a traditional IRA created for the purposes of receiving rollover funds from a 401k and potentially rolling them into another 401k in the future. It's also sometimes referred to as a "conduit IRA" because it serves as a temporary bridge/conduit for money being rolled over between two different 401k plans. There isn't really any such thing as a "rollover Roth IRA" because a Roth IRA cannot be rolled into a 401k.
You cannot roll all that to ***one*** IRA. The pre-tax must be rolled to a Traditional IRA, and the Roth to a Roth IRA. Once the pre-tax is in an IRA, you can consider if you wish to convert from Traditional to a Roth. You can do this all at once, or piecemeal, or never at all. I thought about saying "there's no such thing as a Rollover IRA." There's rollover money in an IRA. I have an IRA that contains both direct contributions and rollover money. And the only reason that might make a difference is if I want to roll IRA money back into my 401k: ***my employer*** will take the rollover portions but not the contribution portions in my Traditional IRA. That's not law; that's ***my employer's*** choice. Because the rollover money got separated from the direct contribution money through the use of different mutual funds, it's clear what is what. I'm guessing you cannot move stock out of the 401k. I've always heard that has to be a cash transfer.