[Jennifer]

Thoughts on an annuity for a roth/traditional 401k from a previous employer? My current employer does not have a 401(k) available yet and I’m not sure if the previous company is going to eat away at my 401(k) with fees.

Trying to figure out where I should put it next. my contributions were roth where as my company match were traditional.

TIA

[Sandra]

You can roll into into an IRA. Keep good records.

[Rebecca]

Annuities are very rarely the optimal option and I can’t think of a single time that you would want to put Roth money into one (not to say there is never ever a case for it).

Where is the previous 401k? -people may be able to tell you where to find the fees.

If you are a high income earner you may not want to move the money into an IRA to leave the ability to do backdoor Roth conversions later.

[Brian]

You can do a direct rollover to an IRA. The traditional 401k funds go to a rollover IRA (tIRA). The Roth 401k rolls to a Roth IRA.

I’ll bet that an annuity will eat away you 401k with fees a lot more than leaving it in place will do.

If you eventually decide to “unroll” your rollover IRA to an employer’s 401k plan, you can do that.

I believe your custodian will have to track the shares separately.

[Author]

Posts