Hi everyone! I have 3 different 401k 2 from previous employers and my current employer. Would you recommend me to roll over both to my current employer 401 or opening a Rollover IRA?

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It depends on your goals… if you do a rollover IRA, you cannot do a IRA Roth Conversion without triggering the Pro Rata Rule… if you have no plans on doing a backdoor ever, then there are times where a rollover IRA offers more flexibility in product offerings and tax efficient distributions…

I’ve always just taken the Roth portion, and put it in my Roth IRA, and put the traditional into my new employer plan… but that’s because we do backdoor conversions every year.

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If you’re going to stick with just 401ks, maximize employer matching and ROTH 401k options. If you want to diversify your portfolio further, look into rolling a portion of your eligible 401ks funds into a Fixed Index Annuity (FIA). It’s an option many of my clients prefer because of the guarantees and protections FIAs offer unlike variable accounts like the 401k.

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Just make a rollover and send your current to that rollover when you leave. The only benefit I can think of is that your current employer may pay the fees for the account while you have it under them and the old ones, you are paying. However, some employers don’t pay the fees so idk.

Also depends on what investment company your current job is with and how you invest. I personally can’t stand Vanguards, so I would do a Rollover elsewhere.

The backdoor Roth opportunity is important.

If I were in this situation I would roll to the current 401k if it was good (low fees, good investment options), and if not, evaluate backup options like the IRA rollover, or just leaving the other 401ks where they are until a good opportunity shows up.

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