If you are doing annual backdoor Roth conversions, you need to carefully consider the (likely) tax liability when mixing 401(k) funds into the traditional IRA.
I just looked at what I have paid (fees) my investment company that handles my IRA's. It is astronomical. I have only made 3% overall through the last 10 years combined. This is a no brainer to me.
These financial gurus try to scare you so that is so difficult to roll over. All you gotta do is call the financial institution to learn the rules. Also, the rollover company will walk you through the whole process if it's doable or not. Plus most CFPs want to manage all your investment accounts at 1% AUM & a comprehensive review that cost $7000 -$10,000!! Crazy run don't walk.
They make it very easy to put money into 401K/ 403B, but they make it very difficult to take money out when you are retired. Pro-rata method of withdrawal will cause losses, this is just because their system cannot handle fund specific withdrawals. If you have sufficient money in Money Market fund, why take out money from other funds that lost 25% during this year. Sometimes Employers put a restriction, only pro-rata is allowed although the Administrator's system can handle fund specific withdrawal. Its your money, they are putting hurdles to get your money back. I imagine some law firm will file a Class action law suit for losses one incurs with these unnecessary restrictions.
1. 401K/ 403B assets are protected not only from bankruptcy and creditors, but also from lawsuits as I read somewhere? 2. Read somewhere in an article 403B is not subject to RMD, I doubt ?
If you are doing annual backdoor Roth conversions, you need to carefully consider the (likely) tax liability when mixing 401(k) funds into the traditional IRA.
I just looked at what I have paid (fees) my investment company that handles my IRA's. It is astronomical. I have only made 3% overall through the last 10 years combined. This is a no brainer to me.
These financial gurus try to scare you so that is so difficult to roll over. All you gotta do is call the financial institution to learn the rules. Also, the rollover company will walk you through the whole process if it's doable or not. Plus most CFPs want to manage all your investment accounts at 1% AUM & a comprehensive review that cost $7000 -$10,000!! Crazy run don't walk.
They make it very easy to put money into 401K/ 403B, but they make it very difficult to take money out when you are retired. Pro-rata method of withdrawal will cause losses, this is just because their system cannot handle fund specific withdrawals. If you have sufficient money in Money Market fund, why take out money from other funds that lost 25% during this year. Sometimes Employers put a restriction, only pro-rata is allowed although the Administrator's system can handle fund specific withdrawal. Its your money, they are putting hurdles to get your money back. I imagine some law firm will file a Class action law suit for losses one incurs with these unnecessary restrictions.
1. 401K/ 403B assets are protected not only from bankruptcy and creditors, but also from lawsuits as I read somewhere?
2. Read somewhere in an article 403B is not subject to RMD, I doubt ?