I'm deciding what to do with my 401k after leaving my job. I'm currently unemployed so I won't have the option of moving it to another employer's plan so I have a few questions on what will happen if I were to move it to an IRA or leave it alone.
If I were to leave the 401k as is:
- Are there any tax implications that I need to be aware of if I leave the 401k alone? I don't plan on taking any distributions
If I were to move the 401k to an IRA:
- This year, I contributed to a traditional IRA and converted those funds to my Roth IRA (backdoor Roth IRA).
- What would be tax implications if I were to move the 401k to a traditional IRA? Would the pro-rata rule apply?
- Would it be better to move the 401k to a traditional IRA next year? I'm planning to directly contribute to my Roth IRA for next year since my income won't be high
- Would I need to report anything when filing taxes if I decide to move my 401k to a traditional IRA? For example, would I need to report any gains? Would I report that I moved my 401k? (similar to reporting that I did a roth conversion from traditional IRA)
