Roll over to Apple 401k or vanguard IRA

May 1, 2018 12 Comments

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?


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TOP 12 Comments
  • Apple / Eng

    Apple Eng

    Rolling over to 401k, allows for future backdoor conversion of non-deductible IRA to Roth IRA, without having to pay taxes.
    May 1, 2018 4
    • Adobe acrobat
      What Apple said makes sense. Yo take advantage of backdoor Roth, you want to keep $0 in traditional IRA.
      May 4, 2018
    • Apple h0ot
      Can someone please clarify what this means in layman terms? And how can I do a backdoor Roth?
      May 6, 2018
  • Apple RadarGTFO
    The Apple plan has some insanely low fees (lower than Vanguard directly). I’d roll over to Apple.
    May 1, 2018 4
    • Apple Szekrdd
      Why don’t you tell me one you think is ‘low’? The only good deal is Vanguard 500.
      May 1, 2018
    • Apple RadarGTFO
      Vanguard 500 has 68% lower ER than ETF, Vanguard Extended Market 44% lower, Vanguard Total Bond 42% lower, Vanguard Total International 36% lower.

      Our Blackrock target date funds are 61% lower ER than comparable Vanguard funds.

      Anything else is actively managed and I didn’t bother checking.

      The low cost funds are enough for a diversified portfolio and they are lower cost than anything you can get through a SDA.

      So what exactly has bad ROI?
      May 1, 2018
  • Juniper / Ops shitposter
    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.
    May 1, 2018 0
  • 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)
    May 1, 2018 0


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