I am 63 years old and plan to retire this December. I quit my previous company and still carried their 401K plan. The problem is my brokerage company is going to charge me about $100 for the administrative expense every quarter. To avoid this type of fees, I want to rollover to the IRA account. Would you recommend me to roll over to a Roth IRA or Traditional IRA? How do I fill out Turbo Tax for rollover? Thank you.
You need to roll it over to a Traditional IRA. To a ROTH IRA would be 100% taxable. You will get a 1099R from the 401K for it. You have to report it but it won't be taxable.
You can do a direct transfer to a traditional IRA with no tax consequences. But you will pay income tax when you withdraw funds . If you roll into a Roth you will pay taxes on the entire amount immediately but subsequent withdrawals are not taxed. In either case the only interaction with TurboTax is reporting on your return a 1099-R that your financial institution gives you when there are withdrawals. We do not give financial advice since we don’t know your complete financial situation and goals.
you really need to look at the long-term picture. conversion to a Roth would result in immediate taxation but if you don't the RMDS from your IRA may result in some of your social security benefits becoming taxable. this is a situation where there is no one right answer for everyone. you may want to consult a financial planner