Originally Posted by
TalkTurkey
Copy that. So non-vested is lost. That’s understood. When I rolled over my money, I got no bill of any sort. I know when I retire, the initial rollover amount as reported to IRS will be taxed at my applicable rate. That’s understood. But that money, since rolled into an IRA has been invested many times over and has produced a lot more value in gains and dividends which in an IRA are not taxable.
So let’s say I rolled over that 10k and will await the 2500 tax bill. That 10k has multiplied a few times over in my IRA and all I have to pay is that measly 2500. Sold.
The IRS doesn't send you a tax bill when converting a tax-exempt fund to a taxable one. You are supposed to claim the conversion on your taxes, at which time the $2500 alluded to becomes your duty.
I'm sure you know that, just throwing it out there for others who are not as savvy.
Also, when leaving a company, I think it is better to convert to a private fund vs. rolling over into the new company's fund, because your private fund is usable prior to retirement, whereas a company fund cannot be used without major hassles and penalties. You take away the employer/fund manager control when you convert to a private investment vehicle.