Mixed 401(k) Rollovers

What is a mixed 401(k)?

A mixed 401(k) is a blend of a Traditional 401(k) and a Roth 401(k), and holds a combination of both pre-tax and post-tax dollars.

Because of this combination, usually two checks are issued when you roll over a mixed 401(k) into an IRA. One of these checks is for the pre-tax dollars (Traditional) from your mixed 401(k) and the other is for your post-tax (Roth) dollars. 

How do I roll over a mixed 401(k)?

To minimize the possibility of tax consequences from rolling over a mixed 401(k), you’ll need to have both a Traditional IRA and a Roth IRA. This is because:
1. The pre-tax (Traditional) dollars from your mixed 401(k) must go into a Traditional IRA at Wealthfront; and
2. The post-tax (Roth) dollars from your mixed 401(k) must go into a Roth IRA at Wealthfront.

How long does it take?

Rolling over a mixed 401(k) can take anywhere from 2-3 weeks. Once you have both accounts open, you’ll get instructions on how to send the funds to your accounts. We’ll send you an email once the funds have been invested in your IRAs and your rollover is complete. If this takes longer than 3 weeks, please let us know.

What if I already have a Traditional and a Roth IRA with Wealthfront? Do I need to open new IRAs?

No. If you’re rolling over a mixed 401(k) and already have a Traditional IRA and a Roth IRA, then you can use those two existing accounts. Similarly, if you already have a Roth IRA with Wealthfront, then you’ll only need to open 1 new IRA - a Traditional IRA. And vice versa.

If I’m comfortable with the tax consequences, can I deposit both of my mixed 401(k) checks into my Roth IRA?

Yes, although we encourage you to send your checks in separate envelopes and to also consult with a tax professional.