Some employees will allow you to roll over your traditional 401k into the Roth. At this time that is not an option at ups but I'm holding out hope that it will be in the future.
Yes you take the tax hit when you roll it over. Not many employers have Roth 401k even less let you roll your old 401k into it.Is it even legal to roll over a traditional 401k to a Roth 401k? What about the tax consequences?
So I have the option to have both Roth 401K & 401K while at UPS?
Actually the argument could be made that 50% in both is your safest bet.Yes but it would make zero sense to have both.
Actually the argument could be made that 50% in both is your safest bet.
Mathematically it is the same. Distributive property. (a+b)c = ac + bc where a and b are the accounts and c is the return.The selling point of a 401k is the compounding feature. Dividing the balance between two 401k's reduces the benefits of compounding.
One of my co-workers was a PT sup for a few years. She has her mgt 401k and her Teamster 401k. Both have relatively small balances but combined they would benefit from compounding.
You said that much better than I could of. Same result either way.Mathematically it is the same. Distributive property. (a+b)c = ac + bc where a and b are the accounts and c is the return.