Hello, everyone,
As a lifelong Boglehead follower, I want to simply my IRAs. Here is what I want to do: I want roll out the pretax portion of my Traditional IRA at Vanguard into my employer's plan. My employer will take only pretax money and I have been tracking my IRA basis on Form 8606.
Does my plan seem reasonable? Do you see any pitfalls?
Here is my plan. I have approximately $420k in my Traditional IRA. About $70k is post tax money. I have spoke to Vanguard retirement, and Vanguard will allow roll out--albeit with a check addressed to my employer plan and send to me. But Vanguard will only allow roll out from the settlement fund. So that means I have to liquidate 100%, put the post tax money into something stable like a money market fund, and then the remainder pretax money in the settlement fund. Then I initiate the rollover to my employer plan.
My employer plan offers a concierge service for rollover, but since Vanguard will not send a check directly to the employer plan, I think the concierge service is limited. I will notify the concierge that I am doing the rollover so that they are aware.
Once the pretax money has left Vanguard, then I will convert the post tax money into my Roth IRA.
This should be a non taxable event with this sequence. Going forward, my IRA will be much cleaner with just a Roth. I do plan to contribute post tax non deductible to the traditional IRA every year and then convert immediately to Roth.
Thoughts? I already asked the good people at BH and one very helpful person responded: https://www.bogleheads.org/forum/viewtopic.php?t=466236&view=unread&sid=fd4d848b8d38569fb21cd3be0a18d782#unread.
I appreciate your reading such a long message.