I have about $100k in my Capital one 401k account. I recently switched to Apple and I'm trying to decide if I should move the money to Apple's401k plan or to my vanguard IRA account. Though vanguard has a lot more investment choices, I would be able to borrow about $50k towards a house down payment if I roll it over to Apple 401k. Is that a smart thing to do? Should I be aware of any pitfalls?
The Apple plan has some insanely low fees (lower than Vanguard directly). I’d roll over to Apple.
Rolling over to 401k, allows for future backdoor conversion of non-deductible IRA to Roth IRA, without having to pay taxes.
I can do that even if I roll over to a regular IRA right?
Just need to convert $30k/yr to Roth to avoid paying taxes?
if you take a 401k loan, you'll have to pay it back with after tax funds. your current pre-tax 401k contribution will go to your retirement account only and not to paying off the loan. so I didn't take a 401k home loan. just bear that in mind.
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I agree with your thoughts. the loan feature comes in handy when buying a home. Check the rollover process with the Apple 401k administrator though. When rolling over the amounts, dont get a disbursement check in your name.. but it should be to the new plan (FBO you)