Definitely don’t go to IRA if you’re doing backdoor Roth. Not just annoying,

Mar 31, 2025
2:28:51pm

seacougar Truly Addicted User

But also less lucrative as the pro-rata tax burden can be meaningful enough to rob significant value from the whole maneuver.

This message has been modified

Originally posted on Mar 31, 2025 at 2:28:51pm

Message modified by seacougar on Mar 31, 2025 at 2:29:21pm

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seacougar

Bio page: seacougar
Joined: Oct 5, 2010
Last login: Apr 2, 2025
Total posts: 2,190 (1 FO)

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Messages

Author

Time

What’s the reason people advise against rolling an old employer’s 401k into your new employer’s 401k?

TCuz Coastal Elite

Mar 31, 1:41pm

most IRA's will have significantly more investment options than most 401Ks

fulano

Mar 31, 1:43pm

That's one big reason. Another is that, depending on your employer size

CommodoreCoug

Mar 31, 1:46pm

That makes sense. So I’ll lose flexibility on investment options

TCuz

Mar 31, 1:46pm

This is my biggest reason, for sure.

Eddie

Mar 31, 1:47pm

And often lower fees too

supertux

Mar 31, 3:23pm

The only reason I can think of is if the old 401k is performing better than the

Avery

Mar 31, 1:47pm

The fees could be higher especially if you have moved to a smaller company.

Dangerous

Mar 31, 2:05pm

Sometimes they can’t transfer assets in kind, but liquidate to cash and transfer

seacougar

Mar 31, 2:27pm

Definitely don’t go to IRA if you’re doing backdoor Roth. Not just annoying,

seacougar

Mar 31, 2:28pm

One reason people might want to keep it in a 401k is so they can get a loan

crack

Mar 31, 2:32pm

Congratulations on the new job

Sandy Lyle

Mar 31, 2:43pm

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