What should I do with my old fidelity 401k from EY? Roll over to my Deloitte 401k, an IRA, or leave as is?

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Posting as :
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Cash out

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Do you know how long we have to transfer / move our 401K? What's stopping me from just keeping my EY 401K

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DO NOT roll to IRA if you think you will ever need to make backdoor Roth conversions because you exceed income requirements. You will be taxed on the conversions due to Pro Rata rule. If you move to 401K then you can make backdoor Roth IRA conversions without issue.

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Deloitte 401k or IRA

Wealthfront

IRA

D 401k. We have great fund options.

Depends on EY, but if you have more than like $5-10k then you can just leave it there. Fidelity is compliant with Deloitte brokerage requirements as long as you don’t own client stock.

Have 9.9k lol

Haha check with their requirements. Likely $5k minimum to keep it there

IRA

Sometimes the fees are higher if you’re not an active employee. Also, better chance you forget about it (happens more often than you’d think)

I left mine. I don't think there are any extra fees. It is nice to see two different 401ks compete for who gets the biggest returns.

Definitely roll to IRA or new 401k fees are ALWAYS higher for keeping at old firm.

SM1 - can one not take advantage of Roth 401k if affected by income limits?

SM1 holy crap I️ just read up on that. Would’ve tripped me up... thanks

D1: Roth 401k is no problem, there are no income restrictions.

So you are saying if Roth 401k is an option, there is no need for the backdoor option, is that right?

D1: Not saying that at all, they both serve different purposes. If you are in a position where you are forced to backdoor a Roth IRA conversion due to income limits, contributing to a Roth 401k instead of a traditional 401k would be a bad idea. Roth401k is great if you are in 15% tax bracket, above that its not such a great idea (the more you earn, the worse it is). You only have so much tax advantaged space you can use in a single year which is why planning now not to be snared by Pro Rata is a good idea.

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