I thought I had read there was a general rule of having all Roth contributions if you are in the 12% fed tax bracket.You'll need to research whether the current plan offers "in-plan conversions" of an existing balance or just new contributions to either Trad, Roth, or both. If the new plan doesn't offer in-plan conversions, the old 401k does, and you have determined that a Trad->Roth conversion make sense for you (I'm not convinced, but it's your money & tax-bill), then you would convert to Roth first, then rollover "in" to the new Roth 401k plan.
Why do you want to convert a Trad balance to Roth at age 25 (with about a $25K balance)? Traditional accounts are the preferred location to hold your 10% bond allocation (which will increase as you age ... or at some point in your future), so having a Trad balance is not inherently bad.
There is a bond index fund at .03% expense ratio and .03% operating expenses. Gonna list all the funds the TDFs invest into. If you wanted me to I could also list the allocations for the different years.Do you not have access to a low-cost US bond index? Do you have access to the State Street funds that the TDFs invest int (e.g., State Street US Long gov't bond index)?
TDFs equity
State street s%p 500 index fund
State street russel small/mid cap index fund
State street global all cap equity ex us index fund
TDFs fixed income
State street US long government bond index fund
State street US short term government/credit bond index fund
State street US high yield bond index fund
State street US bond index fund
State street 1-10 year US TIPS index fund
Alternatives
State street developed real estate securities index fund
State street bloomberg enhanced roll yield total return index commodity
Thank you for the resources. I will be sure to solidify this soon.90/10 seems fine for a 25y old, but if want to verify your choice then do one or both of the exercises below.
Statistics: Posted by Penguino — Thu Sep 18, 2025 1:19 pm — Replies 18 — Views 1456