What should I do with my 401K?

Walmart
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Go to company page Walmart

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Nov 7, 2021 31 Comments

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

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TOP 31 Comments
  • Switch to an IRA to get a lot more investment options than a typical 401k account.
    Nov 7, 2021 3
    • Microsoft / Cust. Srv.
      BBtcBrand

      Go to company page Microsoft Cust. Srv.

      BIO
      godlike
      BBtcBrand
      Better to get a ledger. No one can access except you
      Nov 7, 2021
    • New
      rosita

      New

      rosita
      Put it in Shiba, even you won't able to access it. (Once it goes to 0)
      Nov 11, 2021
  • Amazon
    Sang-Woo

    Go to company page Amazon

    Sang-Woo
    I switch jobs mainly to convert 401k into IRA…it’s a gold-mine
    Nov 7, 2021 4
    • Walmart
      Sunscr

      Go to company page Walmart

      Sunscr
      OP
      I don’t have any other ira, sep ira or roth accounts at the moment.

      So can’t i take all 100k from 401k and just move them into traditional ira and then do a roth conversion of whole 100k?
      Nov 7, 2021
    • Intel
      AFAu70

      Go to company page Intel

      AFAu70
      Yea you can. But there is no reason to do that. To convert 100k to Roth will cost you at least 24k. It would completely kill the whole point of saving that money pretax. Better is to convert later when your income is lower.
      Nov 21, 2021
  • Salesforce / Sales
    LowTide

    Go to company page Salesforce Sales

    LowTide
    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.
    Nov 7, 2021 3
    • Right. Why do you think paying taxes on 100k, possibly at a higher then normal marginal rate, is better than keeping it tax deferred?
      Nov 7, 2021
    • Walmart
      Sunscr

      Go to company page Walmart

      Sunscr
      OP
      Couple reasons.
      1. Backdoor roth option might change in future and might not be available anymore

      2. Mostly my taxable income for this year will be much less compared to my future taxable income

      3. I am on H1b visa and incase I were to leave US before retirement then i might end up taking out whole money and at that time I’ll have to pay taxes on whole amount in 401k as compared to right-now only on 100k. I mean if i were to leave well before retirement then I won’t be able ripe the benefits of a roth
      Nov 7, 2021
  • Amgen
    dataguy5

    Go to company page Amgen

    dataguy5
    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
    Nov 7, 2021 7
    • Microsoft / Cust. Srv.
      BBtcBrand

      Go to company page Microsoft Cust. Srv.

      BIO
      godlike
      BBtcBrand
      You can call and convert Roth 401k directly to Roth IRA. i did that with some funds on fidelity
      Nov 8, 2021
    • Amgen
      dataguy5

      Go to company page Amgen

      dataguy5
      You can do that if you are going to convert your 401k that went to IRA to Roth IRA and pay taxes on it and then that opens up backdoor IRA again. Depending on the amount in the 401k you might want to stagger the conversion not to jump tax brackets
      Nov 8, 2021
  • Amazon
    yMjO20

    Go to company page Amazon

    yMjO20
    Where did y’all learn all this stuff about 401k / Roth strategies? Is there any good material online?
    Nov 7, 2021 1