Talking stocks, trading, and investing in general

[otc]

Do you do backdoor Roth IRA?

 

[PhilKenSebben]

I dont, no. I jer

Do you do backdoor Roth IRA?

P.my contributions just under the cap each year

 

[brokencycle]

I dont, no. I jer

P.my contributions just under the cap each year

If your income is under the limit where you're not worried about the backdoor roth, you're no longer welcome here.

 

[Omega Male]

If your income is under the limit where you're not worried about the backdoor roth, you're no longer welcome here.

He freely admitted his main retirement account was under eight figures, so he clearly already self identifies as a future homeless person?

 

[brokencycle]

He freely admitted his main retirement account was under eight figures, so he clearly already self identifies as a future homeless person?

 

[PhilKenSebben]

He freely admitted his main retirement account was under eight figures, so he clearly already self identifies as a future homeless person?

Not all of us can go through life fat, lazy and cuckolded.

 

[nootje]

It is something to aspire to though.

 

[gettoasty]

@PhilKenSebben So you changed workplace and this has been lingering.

I'm taking a guess that you're not working with a financial professional. This already eliminates a bulk of fees IMO. (I don't think a managed portfolio would be concentrated in SPY.)

	Current plan (401k/Merrill)	Rollover IRA/Chase
Upfront costs	0	0
Ongoing costs borne by you	(Asks for the 404a-5 disclosure or "plan fee disclosure-Some employers pay all expenses while other plans prorated the expenses across participant balances)	0 (Again, not professionally managed)
Closing costs	See 404a-5 (should be the distribution (rollover) fee)	Might be "outgoing transfer fee" but would not apply in your case
Other (trading fees, weighted avg. annual fund expense)	Varies (again, refer to your 404a-5 disclosure)	Varies (I think the fee schedule can be easily located online based on your Chase brokerage and/or might be listed on the CRS)
Total annual fees	$	$

Others have already shared general things to consider e.g., use of Roth IRA, ease and use (accessibility).

You pointed out that your 401k is in the red per se currently. Note that there's not capital gains taxes for retirement accounts, subsequently, no tax loss harvesting. Also, if you do rollover the 401k from Merrill to Chase IRA, there's a good chance you'll be invested around the same asset level. Since, it sounds like you're still accumulating. Maybe I'm missing something but I'm not sure how regaining your value would be different in your 401k than in IRA all things being the same.

 

[PhilKenSebben]

@PhilKenSebben So you changed workplace and this has been lingering.

I'm taking a guess that you're not working with a financial professional. This already eliminates a bulk of fees IMO. (I don't think a managed portfolio would be concentrated in SPY.)

	Current plan (401k/Merrill)	Rollover IRA/Chase
Upfront costs	0	0
Ongoing costs borne by you	(Asks for the 404a-5 disclosure or "plan fee disclosure-Some employers pay all expenses while other plans prorated the expenses across participant balances)	0 (Again, not professionally managed)
Closing costs	See 404a-5 (should be the distribution (rollover) fee)	Might be "outgoing transfer fee" but would not apply in your case
Other (trading fees, weighted avg. annual fund expense)	Varies (again, refer to your 404a-5 disclosure)	Varies (I think the fee schedule can be easily located online based on your Chase brokerage and/or might be listed on the CRS)
Total annual fees	$	$

Others have already shared general things to consider e.g., use of Roth IRA, ease and use (accessibility).

You pointed out that your 401k is in the red per se currently. Note that there's not capital gains taxes for retirement accounts, subsequently, no tax loss harvesting. Also, if you do rollover the 401k from Merrill to Chase IRA, there's a good chance you'll be invested around the same asset level. Since, it sounds like you're still accumulating. Maybe I'm missing something but I'm not sure how regaining your value would be different in your 401k than in IRA all things being the same.

I don't know, that is why I asked. The merril is a target date fund mostly. So the question is just is there any reason to keep them separate. Sounds like not much, and by putting it into chase I open up more in estme t options. Many many more. So I think that is what I will do!

 

[HRoi]

He freely admitted his main retirement account was under eight figures, so he clearly already self identifies as a future homeless person?

Ha, like anyone here has that kind of account. All funds go to projecting wealth on the internet and keeping up with all the kopping threads…

 

[venividivicibj]

Are First Republic Bank's equity/bond holders/etc going to get wiped out as well? Seems wild that SVB 'failed', but FRB is getting all these last minute lending facilities to stay afloat, and the equity/bond holders are reaping the benefits.

 

[jbarwick]

If you are worried about being down and the market going up during the "not in the market" phase, use leverage in new account to make back the losses.

 

[PhilKenSebben]

Hey all,

Just a quick follow up here: Should I roll this 401k into a roth? I haven't ever done that before, and I won't be able to contribute more to it, but this year is probably as good of a year as any to do it from a tax bracket perspective? I know we joked about me not having done it before, but that is a yearly calculation that I make to ensure I don't over contribute.

Any thoughts or ideas?

 

[venividivicibj]

Hey all,

Just a quick follow up here: Should I roll this 401k into a roth? I haven't ever done that before, and I won't be able to contribute more to it, but this year is probably as good of a year as any to do it from a tax bracket perspective? I know we joked about me not having done it before, but that is a yearly calculation that I make to ensure I don't over contribute.

Any thoughts or ideas?

That wouldn't be 'rolling', that would be a roth 'conversion' (since youre not going like-to-like, but pre-to-post tax). If youre making much less than you normally do, it might make sense (as you're paying less in income tax than you would otherwise). Also @jbarwick point about the market being down is also a good point, since you'd have less 'income' to declare.

 

[PhilKenSebben]

That wouldn't be 'rolling', that would be a roth 'conversion' (since youre not going like-to-like, but pre-to-post tax). If youre making much less than you normally do, it might make sense (as you're paying less in income tax than you would otherwise). Also @jbarwick point about the market being down is also a good point, since you'd have less 'income' to declare.

Fair point on the nomenclature

i am not making less than normal, but I am making what I anticipate to be about what I normally make, as opposed to last year where I was overemployed and made about 120K more than normal (Which pushed us up a tax bracket). Should I wait until the end of the year in order make that conversion then? once the full financial situation is realized?