Investors seeking to roll over funds from a Roth 401(k) can place savings in a Roth IRA without paying taxes, states Fidelity. Another option is to roll over part of the funds into a traditional IRA, a route made acceptable by the U.S. government in 2015.Continue Reading
Roth IRAs typically provide more investment opportunities than what standard employer 401(k) plans offer, including Roth 401(k)s, states Vanguard. Unlike an investor with a traditional 401(k), one holding a Roth 401(k) account can roll over funds into a Roth IRA without paying taxes. Transferring funds from a traditional 401(k) into a Roth IRA is called a Roth conversion and requires the investor to pay taxes on the amount he rolls over.
Another option for rolling over funds from a Roth 401(k) is to transfer those funds into a new employer's retirement plan, suggests Investopedia. When securing new employment, funds from a Roth 401(k) can be transferred into an employer-supplied Roth IRA as well as a new Roth 401(k). Before rolling funds over, an investor should strive to have the transfer conducted between trustees instead of having the funds sent directly to him to invest at a later date. This decreases the risk of questions from the IRS at a later date.Learn more about Financial Planning