Seeing as how the Roth 401k has only been around for a little over a year and a half, there isn’t a lot of information out there about rolling these things over. I have a Roth 401k at a previous employer and while the fees and funds are very acceptable at the previous employer I just want total control over my choice of investments and want to consolidate some of my accounts, so I will be rolling over my Roth 401k into my existing Roth IRA.
One of the great advantages, at least for me is that by contributing to my Roth IRA at work I know that some day when I leave the company I can roll it over to a Roth IRA which is a much friendlier vehicle for someone who may be thinking about retiring early. Well I have only been contributing to my Roth 401k for a year, but I am interviewing pretty hardcore lately and it’s likely that I’ll be leaving my current company in the next month or so.
I have been contributing to my Roth 401k for the last year and am now considering looking for a new job so that I can make even more money and contribute even more to my retirement.Â When I leave my current employer I plan on rolling over both my Traditional 401k balance to a Traditional IRA and my Roth 401k balance to a Roth IRA.
Well I just sent in the form to change my Roth 401k withholding percentage from 17.5% to 20%. This change is the direct result of me following my plans laid out in my $100,000 by Age 30 post. Seeing as how I just got a raise this won’t hit the pocketbook as hard as it originally would have and really at the same time because of my raise 18 or 19% probably would have sufficed, but I’d rather just stick with my original plan and worst case scenario I end up with too much money. If anything I’d rather overdo it now as my money this year is worth a lot more money that next years (see waiting just 1 more year).
Kind of feel weird even suggesting such a thought, because as a personal finance nut it is my job to fully take advantage of every possible edge I can use to stretch my dollars. Whether it is signing up for the rewards card with the biggest cash back, putting money in the highest yeild savings account, or stashing as much money away as possible where Uncle Sam can’t get his grimey mits on it. However I am continually wondering if I may be going overboard on my retirement savings, in fact I’m honestly worried that by putting so much money away in my retirement accounts that I may actually be delaying my retirement. Eeek!