Vanguard IRA roll-in to Vanguard 401k

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Craig2020
Posts: 21
Joined: Mon Sep 07, 2020 8:01 am

Vanguard IRA roll-in to Vanguard 401k

Post by Craig2020 »

Hoping to get some advice from someone who has successfully rolled an old Vanguard Traditional (e.g., pre-tax) IRA into an active Vanguard 401k. I want to do a back-door Roth IRA this year and want to get rid of an old pre-tax IRA to make sure there are no pro-rata issues. Though I have had some difficulty in achieving this.

If specifics on my troubles are helpful: The 401k side of Vanguard and the retail side of Vanguard do not want to talk with one another, which I honestly am okay with - but when the 401k side tells me to have the retail side mail me a check that I mail back to a Vanguard company, I feel a bit odd. Then, when I try to have the check sent between the two companies, both sides want me to fill out separate paperwork and each side seems to contradict one another. On top of this is the fact that on many days, I can't talk with the 401k side due to multiple hour long wait times and they never call back - plus today the retail side hung up on me and then called back with really bad sound quality that I could not understand what they were saying. I tried to initiate a three way call between both sides of Vanguard and myself or even an email string, but they relayed that was not possible. Today I thought maybe I could use the Voyager (or whatever it is called) representative for help, but that seems to not even be a thing any more.

Look forward to hearing from those who have done this, as to the easiest way to proceed. Thanks in advance.
Pegasus_RPG
Posts: 130
Joined: Fri Jul 20, 2018 11:06 am

Re: Vanguard IRA roll-in to Vanguard 401k

Post by Pegasus_RPG »

My wife was able to effect a similar transaction a few weeks ago by just calling the IRA side. That rep was able to authenticate her and make the transfer. The 401k is a Solo/i401k though which may have made it easier.
MrJedi
Posts: 3538
Joined: Wed May 06, 2020 11:42 am

Re: Vanguard IRA roll-in to Vanguard 401k

Post by MrJedi »

If the 401k side won't initiate themselves (many do not), then you need to go to the IRA side and initiate it by getting a rollover/distribution check from the IRA made out to the 401k side for the benefit of (FBO) you. The check may need to be mailed to you as the middle man. The 401k should have exact instructions on how the check should be written. Probably something along the lines of Vanguard FBO <your name>. Very important to get the name correct so that it's a direct rollover. Then the check needs to be mailed or mobile deposit.
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