I will be retiring next year and plan to rollover my pension into a Traditional IRA w/Fidelity. No other money will be in this account except for my pension rollover funds, along with my union annuity funds. All of my other retirement accounts are with Vanguard. The reason that I'm rolling the pension funds and annuity funds into a newly-opened Fidelity IRA and plan to never touch this account again is because my pension/annuity contributions are pre-federal tax but post-state/local taxes; state/local taxes were paid on these contributions for 20 years. So the basis, which I'll be rolling over, should NOT be subject to state/local taxes upon withdrawal or Roth conversion.... At least this is how I would think it should be, no?
The reason I think this should be the case is because my employer offers a 401k, and within the 401k has created an account literally called the, "Special 401k". This partition within the regular traditional 401k account was created solely to track and keep the basis of the pension/annuity rollover state/local tax free upon withdrawal or conversion. This is how it is marketed to us, so that we roll our pension and annuity money into this account and keep it with our prior employers post retirement.
The problem is.... I don't want to keep that pension/annuity money with my employer when I retire. There are better/cheaper index funds that I would like to roll this money over into. Just looking for any input on whether or not this is possible and any other advice or info which would help me in this process.... And is this possible?
TIA.
The reason I think this should be the case is because my employer offers a 401k, and within the 401k has created an account literally called the, "Special 401k". This partition within the regular traditional 401k account was created solely to track and keep the basis of the pension/annuity rollover state/local tax free upon withdrawal or conversion. This is how it is marketed to us, so that we roll our pension and annuity money into this account and keep it with our prior employers post retirement.
The problem is.... I don't want to keep that pension/annuity money with my employer when I retire. There are better/cheaper index funds that I would like to roll this money over into. Just looking for any input on whether or not this is possible and any other advice or info which would help me in this process.... And is this possible?
TIA.
Statistics: Posted by Que1999 — Fri Jun 14, 2024 6:26 pm — Replies 0 — Views 61