Do you roll your old 401k’s into traditional IRAs when you leave an old employer?

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Yes, but I’d advised against it. Because it makes backdoor Roth very cumbersome.

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Every year, due to the Pro Rata rule

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You can, but second EY1’s point.

Additionally, our 401k has “institutional” versions of some funds, which are basically the same just with lower expense ratios

I did it before because of how limited the investment option was in my 401k plan. But problem with having a traditional IRA now is that when I try to do backdoor Roth, the pro-rata rule applies. So I’ll have to pay taxes for the conversion.

Yes, but you’re assuming your employees will support mega backdoor into perpetuity

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EY1, or anyone, what do you recommend instead? I am also deciding where to roll over a 401k. Income too high to open regular Roth. (New to all this backdoor Roth business but trying to learn and implement!)

If you do not already have an IRA, I’d keep 401k with former employer or consolidate into current employer’s 401k. Then whenever you contribute into non-ded IRA due to high income, immediately convert into Roth. Because there is no gains on transfer, there won’t be any taxes to pay.

When I started doing mega back door Roth IRA conversions the women assisted me said I had to roll over the pre tax employee contribution element into a traditional and I couldn’t say only convert the after tax portion—is that true?

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