| I currently have a Roth IRA, a 401(k) at Previous Employer and 401(k) | at Current Employer. I'd like to consolidate at least a little bit. If | not a big deal, I'd like to take PE's 401 and meld it into my Roth.. | largely to avoid all the extra fees. If not, I'd like to meld the | 401(k)s together so I don't have to keep track of three accounts.
The fundamental issue, as others have already pointed out, is that your 401(k) likely consists of mostly or entirely pre-tax money. A Roth IRA uses after-tax money. So to go from pre-tax to after-tax you have to pay tax.
As for what you can do, you have some choices but perhaps none that achieve all of your goals.
- Roll-over the previous employer's 401(k) to a Traditional IRA. No tax consequences, but you still have three accounts at the end. But perhaps if you have both IRAs with the same custodian, they will be reported in separate parts of a single statement and that may achieve enough simplification.
- Roll-over the previous employer's 401(k) to the current employer's plan. The current employer's plan has to allow this, since that isn't required. You would then have two accounts. The roll-over may become complicated if the accounts don't support the same investment choices, so you may have to convert to cash. That could also be an issue with plan #1, but might be less likely.
- Do a roll-over and conversion to Roth IRA. That leaves you with two accounts, but a tax bill for the amount of the plan that is rolled over.
Out of curiosity, which account has the fees that you are trying to avoid? For IRAs, it should be possible to find a custodian that doesn't charge much if anything as long as you don't mind not getting advice on the investments in the IRA.