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Rollover to an IRA. Google 401k rollover bonus to find the banks that are offering the best bonuses.
True you're right
Don’t put into an IRA if you plan to use the Roth Backdoor in the future. Move to new employer 401(k)
Old company 401(k) also a viable option unless they charge worse fees than new employer. Reason to prefer a 401(k) is that 401(k) assets become Traditional IRA assets. And if you use the Backdoor Roth, it involves making a non-deductible contribution to your Traditional IRA and then converting to Roth. This is a taxable transaction where any investment gains are taxed on conversion. If you have nothing in a Traditional IRA, contribute, and then immediately convert, your gains subject to taxation are zero or nearly zero. But if you already have your former 401(k) assets in a Traditional IRA, then you (presumably) have gains. And IRS rules specify you must treat any conversion as a prorrata conversion of all your Traditional IRA assets. There is no way to specify which you are converting — even if they’re in distinct accounts. So moving 401(k) assets to a Traditional IRA unnecessarily creates a tax penalty of using the Backdoor Roth that may make it unattractive.
Thank you all, follow up: how to roll over to new employer 401k, do I need to engage both companies?
Your new employer likely has a wider variety of 401k options due to independence restrictions, unless you're moving to another big 4