I just left kpmg and have a good chunk of change in my 401k. Should I set up a traditional or Roth IRA and transfer? Any other options? Any tax considerations when transferring?

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If your goal is to get it into Roth IRA then any Traditional and employer contributions (both pretax) will be taxable on the rollover. If you want to avoid creating 2021 taxable income I believe you can set up a traditional IRA and put your pretax portion there and your Roth 401k portion in Roth IRA.

Ideal solution would be if your new employer then allowed you to roll your trad IRA into their 401k. The reason many professionals choose to not have a traditional IRA is then if you earn more than the Roth IRA contribution limits you can do backdoor Roth IRA tax free. If you also have traditional IRA a portion of that conversion is taxable under the pro rata rules.

If your new company's 401k has a variety of good options and reasonable fees it would probably be simpler to just roll it there directly. If you aren't moving to another company at least in the short term it may make sense to just leave it, KPMG's plan offers a good mix of funds and doesn't have exorbitant fees.

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Is the 401k traditional or Roth? You have several options. 1 cash out - don’t do this unless absolutely needed. 2. Leave it if KPMG allows that. 3 roll it into new 401k 4. Roll into Ira. If Roth I would roll into an Ira. If traditional I would make sure you don’t use a backdoor Roth IRA or plan to use one in the future. Traditional Ira balances make a pro rata portion of backdoor conversions taxable.

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In other words what the fearless bowl leader just said.

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