I am self employed and have an individual 401k plan with Vanguard. I also have a Vanguard traditional IRA. Right now about 2/3 of my retirement is in the IRA (it was set up for years prior to creating the 401k) and 1/3 is in the 401k. The appeal of the 401k is that it allows bigger annual contributions so that's why I set it up once I was in a position to put away more than what a simple plan would allow. But once the money is in the 401k, is there any reason not to roll it into the IRA? This question came up because I have admiral shares of everything in my IRA but the 401k only allows the investor versions of those same funds. I realize it's not a huge difference in fees, but if it's going to stew for 20+ years might as well go for the lowest fees possible, right?
So bottom line, is there anything wrong with just using the 401k as a temporary landing zone for new contributions and then rolling them along to the IRA on a regular basis?
Thanks!