Rollover to IRA and sacrifice backdoor?

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villars
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Rollover to IRA and sacrifice backdoor?

Post by villars » Sun Apr 06, 2014 9:26 pm

Through 3 previous jobs I have accumulated about 300K in retirement savings in various 401k, 401a, 403b and 457 accounts
They are currently distributed as below with expense ratio and amount at end.


VG MID CAP INDEX VMCIX 0.12% 8k
VG TOT INTL STK INDEX VITSX 0.07% 8K
SFT ADV INDEX 500 0.65% 32K
SFT ADV INDEX 400 MID-CAP 0.72% 12K
IVY VIP INT CORE EQ 1.32% 9k
DODGE COX INTL ST DODFX 0.64% 100K
PIMCO TOTAL RETURN PORT PTTRX 0.46% 15K
SSGA SP 500 INDEX FUND JOZBT 0.17% 92K
FID DIVERSIFIED INTL K FDIKX 0.78% 6K

total : 281K with average weighted ER of 0.47%

I would like to consolidate them into one account by transferring to a traditional IRA at vanguard.
The downside is becoming unable to do backdoor Roth.
The upside, in addition to simplicity, is the decrease in expenses by switching to equivalent fund admiral shares ( total stock VTSAX, total international VTIAX, total bond VBTLX).

Should I keep them in place and continue doing backdoor Roth, or consolidate in IRA? If financially this is a close one, I would rather simplify and consolidate.
I am 41 and we are in 35% / 39% bracket

DSInvestor
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Re: Rollover to IRA and sacrifice backdoor?

Post by DSInvestor » Sun Apr 06, 2014 9:35 pm

Does your current 401k have a good selection of low cost investment options and allow inbound rollovers from those other plans? Rollover into your current 401k may allow you to preserve the option to backdoor into Roth IRA.

It looks like some of those old plans have excellent options. Is there any option to rollover into one of the older plans with excellent low cost options? For example, I have heard that TSP will accept inbound rollovers even after you have separated from service.
Last edited by DSInvestor on Sun Apr 06, 2014 9:41 pm, edited 1 time in total.
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villars
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Re: Rollover to IRA and sacrifice backdoor?

Post by villars » Sun Apr 06, 2014 9:39 pm

DSInvestor wrote:Does your current 401k have a good selection of low cost investment options and allow inbound rollovers from those other plans? Rollover into your current 401k may allow you to preserve the option to backdoor into Roth IRA.
sadly no. Current 401k is all actively managed American Funds ( ERs of 0.8% or so ) , and no index funds. I don't think it it allows incoming rollovers, but I am not sure and will have to confirm with HR.

DSInvestor
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Re: Rollover to IRA and sacrifice backdoor?

Post by DSInvestor » Sun Apr 06, 2014 9:44 pm

What about the possibility of consolidation into one of the older plans? It looks like you have some excellent low cost options in some of those plans. I have heard that TSP (401k for Federal employees with extremely low expense ratios) will accept inbound rollovers even after separation from service.
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villars
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Re: Rollover to IRA and sacrifice backdoor?

Post by villars » Sun Apr 06, 2014 11:38 pm

That sounds like a great idea. thanks for the tip.

If we can set up one for both me and my wife, that would solve our problem with her IRA ( see my previous post http://www.bogleheads.org/forum/viewtop ... 2&t=134758)

We already have joint ownership in a partnership that generates passive income ( reported on K-1), as well as a rental property ( our previous house). Not sure though if these would be enough for a "qualified joint venture" as they are passive activities. Can anyone weigh in on that?

If those do not qualify, I can convert my hobby ( writing software) to a business, and justify the extra time as a means to have a solo 401(k) :D .

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Re: Rollover to IRA and sacrifice backdoor?

Post by placeholder » Mon Apr 07, 2014 12:53 am

I'd keep the old account as it has good choices (although I'd consolidate within to get rid of the expensive ones) as multiple accounts don't bother me at all.

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