paddyj, welcome to the forum.
E.g., if the desired investments cost 0.55% more in the 401k vs. outside it and the rollover has $50K, that's an extra $50K * 0.55% = $275/yr. If you invest $7K into a Roth instead of a taxable account, gain 10% and pay 15% tax on that gain (this is just a "for example"), you save $7000 * 10% * 15% = $105/yr.
You can add layers of complexity (requiring guesswork) to such analysis (e.g., see Expensive or mediocre choices) but does that give you enough for starters?
How much below? That matters because....My spouse has a rollover IRA (from earlier 401K) in Vanguard (balance below $100K).
...depends on the extra cost for parking the rollover into the 401k, vs. the savings accrued by using the backdoor Roth.does the benefit of being able to do backdoor Roth for this year and coming years outweigh the added costs of 401k admin fees (55 basis points)?
E.g., if the desired investments cost 0.55% more in the 401k vs. outside it and the rollover has $50K, that's an extra $50K * 0.55% = $275/yr. If you invest $7K into a Roth instead of a taxable account, gain 10% and pay 15% tax on that gain (this is just a "for example"), you save $7000 * 10% * 15% = $105/yr.
You can add layers of complexity (requiring guesswork) to such analysis (e.g., see Expensive or mediocre choices) but does that give you enough for starters?
Statistics: Posted by FiveK — Sun May 19, 2024 10:57 pm — Replies 1 — Views 66