I have a large amount in the 401k of a former employer. I don't plan to keep it in the current 401k regardless since it has limited investing options and I can get lower cost options outside of the plan. Pre-tax money mostly, though I have a bit of after-tax contributions that I will mega backdoor Roth in March after the plan fails testing and sends me some contributions back.
I'm favoring to roll the old 401k to a rollover IRA to earn brokerage transfer bonuses. I live in a state that protects IRAs from creditors, which is true of most states.
Cons:
I cannot do a backdoor Roth IRA anymore.
More growth in tax-deferred accounts and less in Roth.
Pros:
I can use this money to earn brokerage transfer bonuses, which are likely to match or exceed what I could contribute in the future (e.g. 7k in 2024).
I will be able to invest the 7k I would have invested in a backdoor Roth and put it in a taxable account to purchase ETFs. So more money overall.
The alternative is that my new 401k accepts incoming rollovers, so I could put it there instead. It has a zero cost brokerage link where there are few restrictions, and low overall costs. As far as I know, I would be able to put the money in the plan later if the bonus scene dries up.
I seek validation, alternatives, criticism, complaints about Vanguard, and education about decision factors worth knowing.
I'm favoring to roll the old 401k to a rollover IRA to earn brokerage transfer bonuses. I live in a state that protects IRAs from creditors, which is true of most states.
Cons:
I cannot do a backdoor Roth IRA anymore.
More growth in tax-deferred accounts and less in Roth.
Pros:
I can use this money to earn brokerage transfer bonuses, which are likely to match or exceed what I could contribute in the future (e.g. 7k in 2024).
I will be able to invest the 7k I would have invested in a backdoor Roth and put it in a taxable account to purchase ETFs. So more money overall.
The alternative is that my new 401k accepts incoming rollovers, so I could put it there instead. It has a zero cost brokerage link where there are few restrictions, and low overall costs. As far as I know, I would be able to put the money in the plan later if the bonus scene dries up.
I seek validation, alternatives, criticism, complaints about Vanguard, and education about decision factors worth knowing.
Statistics: Posted by whodidntante — Sat Dec 16, 2023 9:18 am — Replies 1 — Views 108