What is a reverse rollover, and why might you roll an IRA into a 401(k) or 403(b) account?

The term refers to moving money in a way that’s different from what happens most frequently. At some point, people often move money out of their workplace retirement plans—and into an IRA that they control. There are pros and cons of doing that, and of course, you want to review your options carefully before making any moves.

🌞 Subscribe to this channel (it's free): [ Ссылка ]

But there may be good reasons for moving money in the opposite direction: From an IRA to your 401(k) or similar plan. When you do that, you can potentially eliminate pre-tax IRA balances, which could help you manage RMDs (by postponing them, at least) or do backdoor Roth conversions.

Get free retirement planning resources: [ Ссылка ]
🔑 9 Keys to Retirement Planning
🐢 6 Safest Investments

There may be other reasons for reverse rollovers, as well. For instance, maybe you’re going to leave a job after age 55 but before age 59.5 and you want to use the so-called Rule of 55.

More information:
Pros and cons of rolling to a 401(k): [ Ссылка ]
Roth conversions, backdoor Roth, and mega-backdoor Roth: [ Ссылка ]

As with any decision, this requires careful analysis, and you want to examine the pros and cons carefully with a tax advisor, attorney, and financial planner who are familiar with the details of your situation. It may make sense to use this strategy, or it might be one to skip.

Make sure to look at the big picture as you weigh the advantages and disadvantages. For example, it’s important to know if you have a quality workplace plan with reasonable fees and good investment options. If you don’t, that makes any tax management strategies a bit less appealing. But still, the approach could make sense.

Learn about working with me at [ Ссылка ]
✔️ Flat-fee and hourly advice options
✔️ One-time projects available
✔️ Investment advice (optional)

Justin Pritchard, CFP® is a fee-only fiduciary advisor who can work with clients in Colorado and most other states.

CHAPTERS:
00:00 Like a Rollover, But Different
00:25 What Is a Reverse Rollover?
01:28 Postpone RMDs While Working (If Allowed)
02:37 Penalty Free Withdrawals At 55 (If Eligible)
03:50 Enable Backdoor Roth
05:49 Better Investment Options?
06:54 Bigger Loans Available?
07:52 Creditor Protection
09:09 Getting the Money Out of Your 401(k)
10:02 Moving Money From the IRA
10:55 Are Roll-Ins Even Allowed?
11:16 Less Control Over Investments, Fees, Etc.
12:24 Pre-Tax Money Only?
12:48 Annual Contribution Limits

IMPORTANT:
It's impossible to cover everything you need to know in a video like this. The only thing that's certain is that you need more information than this. Always consult with a CPA before making decisions or filing a tax return. This is general information and entertainment, and is not created with any knowledge of your circumstances. As a result, you need to speak with your own tax, legal, and financial professional who is familiar with your details. This video is not a substitute for individualized, personal advice. Please verify with your plan administrator when employer plans are involved. This information may have errors or omissions, may be outdated, or may not be applicable to your situation. Investments are not bank guaranteed and may lose money. Opinions expressed are as of the date of the recording and are subject to change. “Likes” should not be considered a positive reflection of the investment advisory services offered by Approach Financial, Inc. The Comments section contains opinions that are not the opinions of Approach Financial, Inc., and you should view all comments with skepticism. Approach Financial, Inc. is registered as an investment adviser in the state of Colorado and is licensed to do business in any state where registered or otherwise exempt from registration.

свернуть