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Ok, if you donât currently have an IRA, you should not roll your 401(k) into an IRA. You should keep them in the Deloitte plan or roll to your next employers 401(k) plan.
This will allow you to use the âbackdoorâ Roth IRA. Look up how it works on the internet, but it will allow you to contribute to a Roth IRA despite the income limits.
^ your CPA is giving you bogus info about iraâs, read up on the advantages and get a new cpa ( thatâs a red flag in my book)
You can't put money into the company's plan once you no longer work there. You can leave your money there or roll it over (depending on the options and expense ratios at your new employer)
You should be able to move your 401k assets to an IRA, which would allow you to invest in individual shares at your discretion. However, this may close the âRoth backdoorâ if you have been using it
I rolled mine to vanguard ira
Thanks you for the info... Will hunt for another CPA. I had a feeling something was off with this guy. Need to understand what the backdoor is... Will look this up. Thank you đ
The backdoor: Normally the Roth income limit is 135K but contributions are reduced starting at $120K. But the 401K backdoor allows you to invest in a Roth even though you are over the income limit.
Thank you all for the input, never used IRA, asked my CPA once and he said after 200k combined income, there is no advantage of IRA investment and since I have never checked about IRA. Any insights I'll be helpful
^ Not quite. The Roth back door is achieved by making a non-deductible contribution to a Traditional IRA and then immediately converting to a Roth IRA. Ordinarily this conversion is taxable on any gains in your IRA. However if you have no gains in your IRA because you use it only for temporarily housing contributions for one day before converting to Roth, then this is immaterial. A 401(k) is not involved.
Straw poll: how many of you are maxing out on your 401k contributions and also contributing significantly to IRAs??