I’m about to switch companies. I presumed that I would just roll over my old 401(k) into a couple of Vanguard IRAs, however it just got through my thick head about the possibility of doing a backdoor IRA. That means I would want to keep from rolling over in order to not have any funds in a traditional IRA to avoid pro rata such-n-stuff when doing the conversion. (Details are a bit fuzzy as I haven’t actually done this before).
Question: I haven’t actually done a backdoor IRA before as I was asleep at the wheel. Both of us will be able to do the in-plan Roth conversion to fill up the entire $55k 401(k) space this year, so in comparison the backdoor Roth IRA seems like less of a priority. Should I roll over my old 401(k)?
Considerations:
The overall choices and fees are not the best. I am in three index funds which are very low fee but all of the other choices are high fee
If I consolidated at Vanguard it would push us over into the first class of Special People status with $1M invested with them
My new company’s 401(k) will be with Vanguard (yay!)
There is probably something else to consider but it is past my bedtime