Sorry to hijack, but can I take this inquiry to the next level? I've left my job for a summer sabbatical and need to decide what to do with my 401(k) investments. I'm not going to a new employer for awhile -- haven't really even started looking yet -- so my two options are to stay in the current 401(k) or rollover to an IRA. Now, I'm pretty sure I want to rollover the investments, but the bigger question is whether to go to a traditional IRA or a Roth IRA. And also if there are any dollar limits on the rollover.
I'm going to use made-up numbers but in fair proportion here. Say I have: (1) $150k in my traditional 401(k) (Schwab), (2) $120k in my Roth 401(k) (Schwab), (3) $0 in a traditional IRA (because I've always contributed directly to a Roth IRA or immediately rolled over), (4) $50k in a Roth IRA (Vanguard), and (5) taxable investments (Vanguard). So, my understanding is that the Roth 401(k) funds would definitely go into the Roth IRA (since taxes have already been paid on these). But what about the traditional 401(k) funds? Do all of those go into the traditional IRA? Would I be allowed to put them all in the Roth IRA (and pay taxes now)?
This is further complicated because I had divided my stock investments and bond investments in different accounts for tax purposes, and now I guess that might get messed up if I move money from a traditional 401(k) to a Roth IRA. I also have enough dollars invested with Vanguard for some free consultation or something -- is it worth asking them what to do about allocation?
Sorry for my rambling. Thanks in advance to anyway who can offer knowledge on this matter.