I have a good chunk of money in Vanguard from my previous job in one of there target funds that has been doing ~ 15% YOY. I now work for Amazon and have my 401K in fidelity which is also invested in the same Vanguard Fund. Question: does it make sense to roll over my previous company 401K to an IRA, Keep it as a 401K, or merge it to my current 401k plan Thanks in advance #personalfinance
Make this poll. Better to roll over
Added poll! Thanks
How long do you plan on staying with Amazon? You can take advantage of the compounding interest by merging it into your current 401k plan at Amazon but if you don’t plan on staying more than a few years I’d just suggest rolling into an IRA
If you roll over any pretax funds to an IRA you will not be able to back door Roth (unless you convert everything and pay taxes). Just an FYI, disregard if it doesn’t apply to you. Most people pick one of the last two options you listed
Better to roll over unless you plan to do backdoor ira - which case park the traditional in a 401k and Roth in IRA
Didn’t even know about back door IRA so that’s a good idea. I have considered paying taxes up front and moving it to a Roth IRA and then letting it sit there till retirement. I’m young so weighing my options. Really need a financial advisor
Some good threads on bogleheads about this. Not sure if a CFA will be that helpful given no one knows what tax rates, inflation, SS deficit etc will look like. I’m sure they have an opinion on what bets to make but so does everyone else.
Prob not worth, not sure if you can even move all your trad into Roth if it's more than the 6k annum. Get a robotax advisor from wealthfront or similar
Roll it over into a pretax traditional IRA. More investment options than moving to Amazon 401k + no tax bill.
If you do this, just know backdoor ira is no longer a feasible option due to taxes
What does this have to do with back door IRA?
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I rolled over previous company 401k to new company 401k to make it easier for managing. You can operate separately if you want to. Check fees and see if you can save by moving.
Yeah look at fees first then consider simplicity