Related Posts
Does EY let you keep Amex rewards points?
How is the AMEX account in IBM?
Anonymous User
What does 401k mean?
More Posts
How is the work life balance in Citi?
Here is the scenario: Have 2 offers from IT MNCs and 1 from Citi. Citi's offer is the highest. Almost 5 lakhs diff in the fixed component. Although money is important, but I am also seeking a little balance with life. I was previously in ZS Associates and to be frank, life was hell. I am not looking to relive that phase again.
What are the daily actual working hours?
Shall I join Citi or let go it for a lower package offer?
Seeking honest advice here.
Additional Posts in Consulting
Chief
Rising Star
New to Fishbowl?
Download the Fishbowl app to
unlock all discussions on Fishbowl.
unlock all discussions on Fishbowl.
Roth will incur big tax hit and increase AGI, potentially pushing you into phase out in many deductions/credits. I'd roll to a new Vanguard Traditional IRA (or mix in some Roth).
Thought Roths can only stay as Roths? And 401k can become traditional ira, or Roth with new tax hit?
Yea, I just did some research (i.e. Google) and I think *think* you are incorrect. Honestly, this shit makes my head hurt. I'm pretty sure your conversion gets pro rated against all pre-tax funds in any IRA. I'm meeting my accountant this week for my taxes anyway, I'll ask him then.
If I roll over a Roth to a Roth there will be no tax hit tho?
P2 - You can backdoor Roth a Trad IRA that was prev rolled from employer 401k. The trick is that there can't be other funds in the same account. So... to preserve options later, roll the 401k into a new traditional IRA and don't add funds to it from direct contributions.
Roll over to avoid duplicate fees. Roth vs IRA vs 401k depends on income and taxes now vs later.
I'd opt for 401k but depends on you and how much it is
If I roll into IRA, I'm not going to get taxed on it?
You'd pay tax now to convert, then you're good to go.
I seem to recall Vanguard had a better selection of funds (at least vs my previous employer on Fidelity) so I'd probably roll over to a traditional IRA
401k can become a Roth..but you're going to have to pay taxes on it. Rollover the traditional 401k to a traditional IRA and you're good to go.
Don't roll over. Corporate 401k accounts have notoriously high fees compared to individual roth and ira. Plus you get more investment choices
DD2 is right. 401 can roll to 401 or indy IRA. Traditional to traditional or Roth to Roth has no tax implication. Trad to Roth incurs taxes... AND counts as AGI for determining various phase-outs (like student loan interest). SM1 - it's still a rollover to an individual IRA, which is what I recommend. Maybe just enough Roth to avoid bracket bump and phase outs. Otherwise, keep it traddy.
Keep in mind, rolling to a traditional IRA may impact ability to do a back door roth later. Take a close look at fees, but my guess is your best bet is to either leave it where it is or roll it into your new 401k
BCG1 - you can get around it with different accounts? I legit did not know that! I've been holding off on the contribution because I have a crap load in an old IRA...
I *think* you can do it regardless, but the basis accounting gets funky with co mingled funding sources.
Probably right. Mine was a new Trad IRA solely containing 401k rollover funds. 2 years later, did backdoor Roth. Ended up recategorizing (Ctrl Z) because I hadn't understood that it counted for AGI and I lost a ton of credits/deductions. Thankfully, they provide an undo option. Brain damage.
I was under the impression that you can do a backdoor with simply a new traditional account
Keep in mind D offers a Roth 401k, so OPs money may already be post-tax
Yes ZS. That too.
PwC2, I'm interested to hear back from you when you meet with your accountant!
D2, it was a traditional 401(k), not Roth 401k.