Transfer to 401K [or to backdoor Roth IRA]

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Joined: Tue Feb 07, 2017 8:13 am

Transfer to 401K [or to backdoor Roth IRA]

Post by macg008 »

Hello everyone,

I'm new to this forum and still trying to get my bearings straight. I am wondering whether pursuing a backdoor Roth IRA in my situation is worthwhile. I currently have $8000 in a traditional IRA at an average 0.16% ER (through Vanguard) and recently funded a 401K through my employer. Should I transfer my traditional IRA holdings to the 401K at a higher fee (0.90 annual operating expenses) or transfer it to the newly created Roth IRA and pay taxes (marginal tax rate 33%). I assume the tax benefit of funding a backdoor Roth IRA makes some kind of movement worthwhile since I have about a 30 year period where I can hopefully contribute to the backdoor Roth. Any thoughts on the matter is much appreciated. Thanks.
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Joined: Sun Jan 08, 2017 12:25 pm

Re: Transfer to 401K [or to backdoor Roth IRA]

Post by PFInterest »

yes the rIRA route makes sense. the more sheltered space the better.
role the IRA over to the 401k (but you need to see if this is allowed)
if not do you have a solo 401k you can send it to?
if not then you pay the tax and move on.
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