Leaving Walmart to Join LinkedIn. I have around 100k in 401k. What should I do and why? Edits: I am in my early 30’s. I don’t have any ira, sep-ira accounts at this moment. I am also highly interested in seeing if i can do a backdoor roth conversion of the whole amount right away. Not sure if the backdoor roth option will stay here in long run. #linkedin #401k #ira #investments #personalfinance #walmart TC 350 YOE 7
Switch to an IRA to get a lot more investment options than a typical 401k account.
If you think you'd be in a divorce case or something soon ish, consider just keeping in an erisa plan. Lawyers can't touch that shit vs Ira they can.
Better to get a ledger. No one can access except you
Depends on your new plan and your old one. Call the old one and ask about fees for keeping it and fees for rolling it into the new 401k. Usually easiest to keep just one plan if the fund options are inexpensive and the fees aren’t an issue.
Depends on wht u want to do n the necessity or flexibility u have
I switch jobs mainly to convert 401k into IRA…it’s a gold-mine
Why is it goldmine? what are benefits of converting?
If you convert wouldn't that prevent you from doing a backdoor roth effectively due to prorata rules
There is no rush on this. Get settled in at LinkedIn. If they offer a self-directed investment plan where you can buy literally any stock you want within your 401k then I’d move it to LinkedIn. If not, definitely do an IRA. Whatever you do, don’t cash it out. That penalty is enormous.
Agree. Will wait and see the LinkedIn’s 401k plan.
Whatever you do, don't move your funds into an IRA. If you do, you won't be able to contribute to a backdoor Roth anymore without triggering a massive tax bill. Move the funds to a new 401k and contribute to a backdoor Roth on the side.
Are you saying that if I convert my 401k to traditional IRA and try to do a Roth conversion within this year then I’ll be paying very high in taxes this year because all 100k will be added to my taxable income for this year? Whereas if I do this near retirement then i can use Roth Ladder concept to reduce the tax bill.
Right. Why do you think paying taxes on 100k, possibly at a higher then normal marginal rate, is better than keeping it tax deferred?
Just keep it in Walmart 401k. I assume Walmart has decent plan so no real need to move money anywhere.
Yes. Walmart has a very decent plan with very low account fee. Will cross check the fee structure in LinkedIn 401k plan and decide accordingly.
Where did y’all learn all this stuff about 401k / Roth strategies? Is there any good material online?
Microsoft has an entire guide to investing including retirement. I'm sure Amazon does too internally
If you ever want to do backdoor Roth IRA then don’t move to IRA. I don’t think the self directed options of IRA are worth unable to backdoor Roth so keep in existing 401k or move to new 401k
Can’t i do backdoor roth right away and take all 100k from 401k > move them into traditional ira > then do a backdoor roth conversion of whole 100k and pay taxes on it? I am still young and it would be great to have that money grow tax free over next 30years. Plus backdoor Roth rules might change in future.
Yes this is what I did in order 401k Fidelity Traditional IRA fidelity Roth IRA fidelity LLC self directed IRA custodian LLC checking account itBit Metamask/ledger Now I can use all my retirement money to buy crypto and it all grows tax free. Planning to fire in 1 to 2 years
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Which location, just curious? Were you in Walmart Sunnyvale?