Author Topic: Should I rollover a tIRA to 401k  (Read 725 times)

schmerna

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Should I rollover a tIRA to 401k
« on: August 30, 2016, 10:42:38 AM »
I am newly eligible to contribute to a employer's 401k plan (crappy choices- American Funds ~1.5% fees).  I rolled all my previous 401k into a tIRA (vanguard), balance 300K.  The empty tIRA account would allow me to take advantage of a backdoor Roth contribution.

Any advice?  Do the ridiculous 401k fees make this proposition untenable?

seattlecyclone

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Re: Should I rollover a tIRA to 401k
« Reply #1 on: August 30, 2016, 10:53:35 AM »
Assuming you're currently invested in funds that cost 0.1% or less, the extra fees you would be paying each year amount to $300,000 * 1.4% = $4,200. In return you would be able to contribute an extra $5,500 per year to a post-tax retirement account. This doesn't really seem worthwhile to me.

schmerna

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Re: Should I rollover a tIRA to 401k
« Reply #2 on: August 30, 2016, 01:16:51 PM »
Yes, the current investment has <0.1%.  Thanks, I want to be sure I am not missing something.