3 Genius Moves With Your 401(k) When You Leave A Job & Moves To Avoid
ฝัง
- เผยแพร่เมื่อ 15 พ.ค. 2024
- 00:00 Intro
00:42 Leave With Employer
03:33 Roll Over to IRA
06:12 Convert to Roth IRA
07:38 Cash Out
08:48 Annuity
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Disclaimer: Please note that this video is made for entertainment purposes only and not to be taken as financial advice. Always make sure to do your own research.
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Thanks for watching, I appreciate you!
#401k #retirement
*Great video!! I have a Roth 401k with my company I contribute 8% of my income to; only need to contribute 7% to get a 50% match. So counting my Roth IRA contributions, my Roth 401K contributions and employer match. My total retirement contributions is 27.7% of a $43,000 in earned income.*
My main concern now is how can we generate more revenue during quantitative times? I can't afford to see my 401k crumble to dust.
My FA, Megyn Beth's strategy is the best at the moment, I recommend it for beginners because it is perfect for now and it is known.
Getting Megyn Beth to help me really helped me clear all my debts. I started with what I have left and it's been the best decision I ever made.
You're right! The very first time I tried, I invested $2000 and after a week, I received $8,400. That really helped us a lot to pay up our bills.
How do I contact her please?????🙏🙏
The one thing you didn't mention was to roll the old 401k over into the 401k plan at your new job. I did this 4 times over my career because I knew I was going to retire before 59.5 so that was the only way to keep access to my money. Retiring this week and 35 years of 401k contributions is right around $2 million. I did take a loan out against my 401k to buy my first house, but lucked out because the stock market crashed shortly afterwords in 2000 and I was paying myself 7% interest instead of losing 70%.
If you're not going to bash annuities, I will: please don't give all of your money to a company in exchange for getting a fraction of it back. If you must have some security, pay a financial planner to tell you how best to withdraw the money to achieve your life goals.
You are wrong about making a blanket statement about annuities. I retired last year, and I had a pension from a previous employer. I actually took the lump sum and purchased an annuity with it. The annuity was a Joint 20 year certain annuity, and the monthy payment was $125 a month more than if I took the survivor benefit with the pension. This annuity is guarenteed for 20 years. If I die, my wife continues to recieve the payment, with no reduction. With the pension, it would have been reduced by 45%. If my wife and I both die before 20 years, our kids get the payment until the 20 year term is reached. If we both die with the pension, the payments stop, even if it were one day after we start collecting. The annuity will pay as long as one of us is living.
OK. I agree with not putting all your money into an annuity and most likely you would be able to do better with even conservative investments. Now here is a situation that proffers a reason to use a "portion" of your traditional IRA and purchase a lifetime annuity. If you retire earlier than 55 and a lot of your savings are in a traditional IRA, you can avoid the 10% penalty for withdrawals by purchasing a lifetime annuity with IRA funds. The annuity income can get you an income stream to bridge the gap before you are able to withdraw from your traditional IRA penalty free. You will only be paying taxes on the income stream and not on the amount withdrawn from the IRA. Annuities are a specialized tool in the toolbox. Don't use them to drive nails into a wall.
Annuities are one of the biggest scams around 😮
@@rick_in_texas Only to people who don't understand them. They are not for everyone, but there are times and people where the right one works, if you understand them!
There is no entity better equipped than insurance companies to make money for THEM & not you. Stay away from annuities at all costs.
well, if an immediate annuity helps protect assets for spouse to make the other spouse eligible for medicaid for something like assisted living, I wouldn't say stay away at all costs.
I think the move that's often the best is the one you left out (if you're not retiring yet): Roll your old employer's 401k into your new employer's 401k. Why? You end up with one fewer account, there are no tax implications, and this leaves the "backdoor Roth IRA" option open to you (assuming you don't have any other traditional IRA money). Add in the ERISA protections and you're golden.
unless your new plan sucks
Or you could roll your current employers plan into your old employer’s plan. That is what I did 3 employers ago
Many plans do not have a back door option. Beware.
@@NatesRandomVideo If you meant to say many plans do not allow rollovers from other plans, you are correct. Not sure if you understand the concept of Backdoor Roth IRA conversions, but they are not something that can be allowed/disallowed by a plan. The backdoor strategy is only about how you treat your contribution on your taxes.
@@standriggs2420for a mega backdoor a 401K plan must offer post tax contributions. Many do not.
I don't advise people to take a loan out on their 401k but sometimes this can be very advantageous. When I was just starting out I didn't make a lot of money and realized I was in a dead end job. So, I took a loan out on my 401k for a computer and learning materials. I paid back the 401k loan in full. What I got out of that loan was self-taught expertise in my area of focus. I went on the be reasonably successful in my career and will soon retire early.
Great Video. Glad you mentioned the Rule of 55 as an advantage of a 401(k)/403(b) over an IRA. It could mean the difference between retiring at 55 or 60, which is a big deal. Although you could use the EEPP rule instead of 55, that has more restrictions and you can't change your mind once you start. Also, the IRS publication on the Rule of 55 mentions it applies to your current employers 401(k)/403(b), but it is silent about former employers plans. It should still apply, but you might consider moving your old 401(k)/403(b) into your current employers plan if allowed.
The other difference you didn't mention is being able to do a Backdoor Roth conversion. Say in the future you would like to contribute to a Roth IRA but are above the income limit to allow it. The backdoor method is to put after tax money into an IRA and then immediately convert it into a Roth IRA. You don't have to treat the converted money as current year income like a normal IRA-to-Roth conversion, BUT ONLY IF you do not have any money in a pre-existing IRA. So leaving your money in an old 401(k) or transferring it to your current 401(k) can be a good idea. If you want to convert it from a 401(k) to an IRA, strongly consider converting it to a Roth IRA, especially if the tax bite isn't too bad and you can move it all, leaving the backdoor Roth option available in the future.
Thanks for mentioning the Rule of 55. Minor point but you can withdraw at age of 54, as long as you turn 55 during the calendar year. Some of us are counting down the weeks.
For those younger, there's also the "Rule of 72(t)" which allows you to withdraw from retirement accounts at any age without penalty, but it does carry a lot of restrictions.
Erin, my wife and I are slogging through the prep needed to retire from my current teaching job (2nd career), and the transition into Medicare is so Byzantine as to make the income tax system look streamlined and efficient. Trying to figure out what to do with our current 403b (roll it over? cash it out? take monthly distributions?) and how it affects what we pay for required Medicare just makes my head hurt. And yes, I know that if you don't take SS, you can get medical insurance on the open(ish) market, but as soon as you start taking SS you *have* to sign up for Medicare. Fortunately for you guys under 60, all the rules will change before you have to deal with it!
Erin , great video! If I may add something. My employer allows me to do an In Plan Roth Rollover ( it is also called A 401(k) in-plan Roth conversion ) : It allows you to transfer the non-Roth portion of your 401(k) account into a designated Roth account within the same plan. Taxes will not be withheld when you do tis. But the following year , you will receive a 1099R Tax form to file with your taxes. I am not sure if all employers offer this , but mine does.
Thanks for sharing!!!
you may want to revist how you are doing the tax thing, since you could be setting yourself up for underpayment tax penalty if you are waiting until you file taxes. You should adjust (decrease) your exemptions, make quarterly estimated taxes, and/or have additional taxes withheld from your paycheck to cover the taxes you owe on the converted amount for both Federal and State.
@hanwagu9967 , definitely thank you. I have money set aside for this reason. I will do one more In Plan Roth Rollover next year. Because taxes is going up in 2026 , if the government doesn't do anything. But I will continue to contribute to the Roth 401k.
@@Carandiru1992 it isn't a matter of money being set aside, it's about paying taxes when they are owed. If you wait and hold until tax time, you could face underpayment penalty. You need to start paying taxes on the converted amount in the quarter you converted.
@hanwagu9967 , paying taxes on a In Plan Roth Rollover does not work that way. You don't pay taxes on the converted amount quarterly or do you have a option to. You instead get a 1099-R tax form on the following year.
I confirmed with a Legal Shield lawyer in Georgia that you should roll over a 401k into a separate IRA from a self directed IRA you already had opened to keep the same creditor protections of a 401k. Also by rolling over into a separate Roth IRA to do Roth conversions or employer pre tax contributions that you do conversions from your Roth 401k. You can more easily track Roth conversions with the 5 year rule.
I watched this a bit ago and an hour later a thought occurred to me. Recently it was stated that the average retiree had $150K or so in their 401K and everyone was thinking that is a very small amount of money to go into retirement with. But in this video you made a quick statement that the average number of 401K accounts a person has is 3. That got me thinking that if, just if, a person has 3 401K and they average $150K that is $450K worth of money going into retirement. Still far less than the $2M recommended these days but far better than $150K.
Just a thought.
I've wondered the same. All these stats showing everyone is beyond broke. Doesn't completely seem to add up.
Yea, it's been brought up many times when seeing these 401k stats. To make these numbers more sound, I would hope they be able to cross reference the number of 401k's per individual then average that data. Although this would have to be done without identifiable personal information or violating a privacy act.
Yeah, I've noticed the same thing on several TH-cam videos that mention the "average 401k balance". Many times they treat it as if that's the only savings people have. Not only does that not take into account the number of 401k's the person has, but it also doesn't account for IRAs, Brokerage Accounts, HSAs, etc.
Who said 2M is the magic number?
@@jimgeneva2464 No one specifically. I was simply generalizing to make a point. Sorry if I mislead you.
Administrative fees in a 401k can be excessive, and are not always clearly disclosed.
Plus, as Erin stated, those fees can change. Participant Notice is required when administrative fees change, but you are at the mercy of your former employer actually communicating this to you.
I rolled over my 401k from a former employer to an IRA in a Fidelity account that I can control. Honestly, I'm doing way better managing this account on my own compared to my current employer with my new 401k through Lincoln Financial... Of course, I'm using the 401k plan from my new employer to get the matching contribution but I'm not contributing up to the full 15%, instead, I'm continuing to fund my Fidelity IRA (as well as an individual account) where I'm getting much greater returns compared to what the Lincoln account is returning.
Thanks.
I am retiring on May 31 2024.
My plan is to move my 401k to an IRA.
When my wife retires we will do the same.
So in retirement we will have 2 IRA accounts total.
We want to keep is simple.
Transfer to a roth IRA. The rollover funds count as contributions after 5 years, which means they can be withdrawn penalty free after 5 years.
@@TheNativeTwo I will also move some money from my IRA to a Roth to load up the lower tax brackets.
@@genglandoh Yep, just be sure to run the math on the benefits. Those taxes set back your growth quite a few years, so it needs to be able to sit and compound long enough to make the up-front tax hit worth doing, which will likely take more than a couple years. Last time I attempted to run the numbers it was something like leaving it invested an extra 10 years to make the tax difference worth the conversion? It was a bit more than I expected it to be.
I generally don’t like the real performance most most 401ks tend to give as they seem to underperform the market by a good deal. I like the flexibility in investment options my IRA account gives me. I also am holding off on doing any Roth conversations until I retire hopefully at 60 to allow me to fill up a lower tax bracket in those years between retiring and when I claim social security at 67 assuming that age isn’t raised which seems very likely.
what does this even mean? 401k isn't an investment, it's an account type. Investmed assets within the account may underperform the market (whatever you mean by that), the plan may not offer as many investment options as a brokerage firm may offer in an IRA, or the plan my only offer investment options with higher expenses.
One thing to keep in mind with legacy 401ks - they require a separate RMD calculation.
What do you mean by "legacy" and separate calculation?
@@FIRED13 old 401ks you haven't rolled over
Rules for rmds changed a few years ago
Informative video, thanks!!!
Rolling over to an IRA seems like a good option. I know Roth IRAs have yearly contribution limits though-are 401(k) rollovers exempted from this? I would ideally max my 401(k) and IRA out when I make enough, and don’t want switching jobs to be a hinderance to that.
401k to IRA rollovers do not impact your annual IRA contribution limit (currently $7k in 2024, regardless of Traditional or Roth).
If you're going to roll your 401k to your IRA, make sure you consider the "pro-rata rule".
I recently begun doing Backdoor Roth IRA every year since my income has passed the allowable Roth IRA MAGI contribution limit. Last year I rolled my prior company 401k into my IRA. I only contributed Roth to my 401k, so the Roth 401k funds rolled directly into my Roth IRA (which is a non-taxable event). But my 401k employer match was Pre-Tax, so the Pre-Tax (Traditional) 401k funds rolled into a Rollover IRA (which from a tax standpoint, is equivalent to a Traditional IRA). Keeping the pre-tax funds in this Rollover IRA means that every year when I do Backdoor Roth IRA, I would be slapped with the pro-rata rule (thankfully I learned about this from a Fidelity advisor). So as soon as the Pre-Tax 401k was rolled to the Rollover IRA, I converted the Rollover IRA to my Roth IRA (which IS a taxable event, taxed at your FIT marginal tax rate). The converted sum was fairly large, so I pre-paid the FIT to the IRS. If you are considering this so you can avoid pro-rate rule on future Backdoor Roth IRA conversions, make sure you have the cash on hand to pay the marginal tax rate of the conversion. And also check to see if your state might tax Roth conversions (thankfully mine does not). The main alternative to this to still be able to avoid pro-rata rule for Backdoor Roth IRA conversions is to have your previous company's 401k be rolled into your new 401k.
Hey @ErinTalksMoney! Thanks for the video! Quick question on something not mentioned in the video. If I was to roll over my traditional 401k to a traditional pretax IRA as described in the first option in the video, as far as I understand I wouldn’t be able to later do Backdoor Roth IRA conversion any more, from after tax Ira contribution to a Roth rollover, because of the pro-rata rule. The conversion to Roth wouldn’t be able to come from only after tax contribution, with no tax implications, right?
the pro-rata rule doesn't prohibit you from doing a backdoor Roth conversion. The tax consequence of pro-rata rule only applies if you have a combination of pre-tax/tax deductible and after tax traditional IRA balances. If everything is rollover 401k, then you don't have to worry about the pro-rata rule. if you contribute to a traditional ira in the future, you can still do a backdoor roth conversion, but you would presumably have both tax-deferred and after-tax contributions in a traditional IRA. That triggers the pro-rata rule. If you were to convert all of your rollover 401k before then, you could then continue to do after tax traditional ira backdoor roth ira conversion without worrying about pro-rata rule.
@@hanwagu9967 Sorry, but to say the pro-rata rule doesn't apply is misleading. I think you are confusing the situation. The short answer to the original question is YES, that is correct.
If you rollover a big 401(k) balance into a traditional IRA, in the future the backdoor Roth strategy will suffer from a tax bite due to the pro-rata rule. You could still do backdoor Roth conversions later, sure, but the pro-rata rule applies even if everything in your IRA is from rollover 401k money. If you convert from a 401(k) into a Roth IRA, then the backdoor Roth is still available in the future, but only because you paid tax on your whole 401(k) balance. Who would do that?
I’ve heard having a traditional Ira complicates/ makes the backdoor Roth IRA incur additional fees with the pro rata rule. I haven’t looked into it yet myself since my employer offers a Roth 401k, but hearing that made me think if I switch employers then it would be better to leave the funds in the old 401k rather than rolling it into a traditional Ira.
Yes I experienced this. I recently begun doing Backdoor Roth IRA every year since my income has passed the allowable Roth IRA MAGI contribution limit. Last year I rolled my prior company 401k into my IRA. I only contributed Roth to my 401k, so the Roth 401k funds rolled directly into my Roth IRA (which is a non-taxable event). But my 401k employer match was Pre-Tax, so the Pre-Tax (Traditional) 401k funds rolled into a Rollover IRA (which from a tax standpoint, is equivalent to a Traditional IRA). Keeping the pre-tax funds in this Rollover IRA means that every year when I do Backdoor Roth IRA, I would be slapped with the pro-rata rule (thankfully I learned about this from a Fidelity advisor). So as soon as the Pre-Tax 401k was rolled to the Rollover IRA, I converted the Rollover IRA to my Roth IRA (which IS a taxable event, taxed at your FIT marginal tax rate). The converted sum was fairly large, so I pre-paid the FIT to the IRS. If you are considering this so you can avoid pro-rate rule on future Backdoor Roth IRA conversions, make sure you have the cash on hand to pay the marginal tax rate of the conversion. And also check to see if your state might tax Roth conversions (thankfully mine does not). The main alternative to this to still be able to avoid pro-rata rule for Backdoor Roth IRA conversions is to have your previous company's 401k be rolled into your new 401k.
I have a Traditional IRA along with my Roth IRA for this specific purpose (backdoor Roth contribution). I keep almost no money in that Traditional IRA to avoid any complications. At the most I may get a tax on $1 (or similar). It's really not a big deal. Just need to do the "two hops" within a short amount of time.
@@richard1113 I also have the same setup for my Backdoor Roth IRA conversions. The complexity comes in if you roll a prior 401k into your IRA (which I did). The Pre-Tax portion of your 401k will roll into a Rollover IRA (which from a tax standpoint is equivalent to a Traditional IRA). And then if you try to do the standard Backdoor Roth IRA, you'll be hit with pro-rata rule because of the pre-tax sum in the Rollover IRA. So at that point your main option (which I did) is to convert the entire Rollover IRA sum to your Roth IRA, which is a taxable event (the entire Rollover IRA sum that is converted is taxed at your current FIT marginal tax rate). This requires estimating the associated taxes and setting that cash aside (I would recommend pre-paying the tax, which I did). An alternative would be to see if your current employer's 401k plan allows IRA to 401k rollovers (roll the Rollover IRA into the 401k plan).
@@gregvanommeren5660 Thanks Greg! Yea, I didn't run into this because I opened my Traditional 401k specifically for the backdoor Roth IRA contributions. I'm kind of worried about doing any "heavy lifting" like you have because I'm concerned with the tax consequences.
@@gregvanommeren5660 thanks Greg, yes that’s what I was worried about based on what I read. I don’t necessarily want to convert all of a 401k to a Roth IRA and pay the taxes on that to enable backdoor conversions in the future. It’s great to have Roth as a completely tax free option later, but I want to go with a mix of roth and traditional to leverage tax savings now and later. I haven’t actually rolled any previous 401ks into an Ira at this point. I’ve heard it mentioned as a convenience factor, but I think I’ll just avoid it for now if the situation does come up to avoid the potential issue with future backdoor Roths and having to come up with that large tax payment.
I cashed out 401k at 25 and have little to show for it and lots of regret. I rolled my 401k into an IRA after the last couple of times I left a job and like that better than leaving in the old 401k because of control and the fees at one of them.
Another option that I don't think was mentioned is to roll an old 401(k) to your current employer's 401(k) if they allow it. I'm considering this for an old 401(k) because I'm currently 50 and could take advantage of the "Rule of 55" if I remain with my current employer for 5 more years.
almost in none of 401k videos in youtube. nobody try to tell the viewer to be wary of the companies vesting schedule they are going to work for
Thanks for mentioning the fees, even a tiny sounding 1 or 2% will kill your return over time. I got my 403b out ASAP
Erin you missed leaving it in because of NUA.
Great point! The good news is that if you go from like account type to like account type (tax advantaged wise) you can avoid triggering NUA.
@@ErinTalksMoney Actually NUA is Net Unrealized Appreciation. It is when part of your 401k is company stock. You exercise NUA and it goes right into a brokerage account and you pay the cost basis and then get the money with Long term capital gains. NIIT is the one that might get triggered. Take care!
Most of us will have an annuity with a built in cola. It’s named Social Security we don’t another one.
you can build something like that with annuity as well
Awesome video. I sent it to a friend too.
Awesome thank you! 🙏
Two key points about your 401k to Roth IRA option:
- most brokerage houses want you to go 401k -> IRA -> Roth IRA. No big deal, but somehow it helps keep things straight administratively.
- your example paid the taxes as part of the conversion and therefore left the Roth IRA with less funds; if you can manage it, it is better to pay the taxes out of pocket so your full balance grows from there on out.
I always rolled any 401k into an IRA. I control the investments 100%. As you point out, details (fees) matter.
You can also convert from a traditional IRA to a Roth IRA in the same manner.
3 1/2 weeks on a cruise. I have lots of videos to catch up on! I hope you get to visit Italy and Greece. Amazing.
What about rolling your Roth 401k to a Roth IRA, do you still have to pay taxes?
No but the 5 year rule is in play if you do.
I do taxes for low income folks. A lot of them come in with 1099-R forms with early distributions from their 401K accounts. Sometimes they did it purposely and are aware of the early withdrawal penalty. Other times they aren’t sure what happened; I SUSPECT that many companies don’t want to deal with small 401k accounts for former employees and so they just cash them out.
companies are legally allowed, but not mandated, to force out former employees form 401k. SECURE 2.0 raised the force out limit to $7k for 2024. Companies are required to give the former employee the distribution choice (e.g. rollover or liquidate). The second limit is if the balance is less than $7k for 2024. Companies can cash out $1k or less in lump sum, but still have to give the former employee the choice, but anything over $1k must be rolled over unless the former employee specifies otherwise. So, if you are seeing a lot of early distributions, you are seeing adult choices being made to take early distributions. Sure some can complain they didn't understand, but that's a function of them not reading before they sign.
@@hanwagu9967
Thank you for the research.
Most of what I saw was much less than $1k. And yes, the financial literacy is not strong with the folks we are helping with taxes.
What about rolling the old 401k into the 401k at your new job?
Depends on fees and stuff. I've done it. Seems...not worth it.
I rolled my old 401k over after the company I worked for was purchased, very simple process. My new 401k has better funds that my previous 401k, glad i did it.
@@MeltingRubberZ28 I think it's worth it just to reduce the number of accounts you have. Simplicity is key and I wouldn't want to risk forgetting about an account in old age. It sounds silly but I'm sure it happens
@pprb123 I have solved that by basically just having my 401k, and then every other account is with vanguard. I also have all of them listed on a spreadsheet so that also would suffice.
Erin, you mention possibly better protection if 401k vs IRA in case of bankruptcy. Is that also the case if you were to get sued?
Depends on your state.
ERISA is federal law. Your 401k can't be taken in a state lawsuit, either related to personal liability or debt. I'm not an attorney so check it yourself, but I've not seen where a state court has awarded someone's 401k as part of a judgement. I have umbrella liability policy and only consider my risk as it relates to the value of my home, bank accounts, brokerage accounts, and IRAs- not my 401k.
@takatsu5 that's kind of a bummer if that's the case. I rolled my 401k out to an IRA recently. The fact that it could be taken in some crazy lawsuit but my 401k couldn't. Have some regret there.
@@takatsu5 it's not a blanket protection. It's not protected in case of divorce and if you run afoul of the feds, all bets are off...just to name a couple exceptions.
I moved all my accounts into 1 managed traditional IRA account, but part of me was wondering if I should have merged it into my current 401k. I haven't hit the point where I can't contribute into a roth IRA yet, but was wondering if I did end up hitting that limit if I should move all my money into my current 401k. This way if I wanted I could do that back door Roth IRA, but I'm not sure if my traditional IRA needs to be empty to do this.
If you have any tractional (including rollover) IRS and attempt to do a backdoor Roth, the source of the funds is prorated from all IRA accounts for the tax calculation. Practically, that means you should not do a back door IRA Roth contribution if you have any non-Roth IRAs.
@@jayhimes5016 ah that's what I figured just wasn't 100% sure. Thanks for letting me know!
1.) a lot of personal finance flowcharts have priority to max out the ROTH IRA prior to the 401k - notice I said “max”. Always contribute up to the match first to get that instant 100% return.
2.) Once the money hits the investment acc (401k or IRA), it’s just a matter of the investment selection - and the IRA usually is more flexible -
2b -)but also then there’s for ROTH vs Traditional. If you’re young, I’d heavily lean towards ROTH (tax free compound growth), but there’s also the idea of “hedging your bets.” Once Tax advantage isn’t *strictly better* than the other, it’s a matter of the future tax rates, which we have no control over. So there’s also an idea of “spreading” your contributions over the different tax advantaged accounts.
3.) to go back to the flowchart… popular personal finance flowcharts FOR INVESTMENT, (so after emergency fund, debt payments, etc) is usually to get the 401k match, then Roth IRA, then maxing out the 401k. (Max out HSA for [#2]if you have it). I bring this up just to point out that even in popular personal finance rhetoric, you often see this “spreading of funds” across different accounts so I hope you can see the reasoning behind it.
4.) as for the “cleaning up your traditional IRA”. Yes. You would have to clear that out, I simply just transferred it into my current 401k last year. For more details look up the “Pro Rata” rule, or I think it’s also called “Cream in the coffee” rule? But yeah for the back door Roth conversion stuff, it’ll be relevant.
Great point with your 2b section…future tax law is unpredictable.
@@jayhimes5016 Roth IRAs are not included in the tax calculation, so saying all is incorrect.
The one very important thing you didn't mention is if you roll a 401k to IRA and then want to do backdoor Roth IRA contributions, you're subject to taxes on the backdoor Roth contribution, which is known as the pro-rata rule. Many financial advisors will not let you know this. As part of recent DOL decisions those advisors that want to get their hands on your old 401k now have to act as a fiduciary, but I don't know if that includes giving this advice. Caveat emptor...
There is no such thing as backdoor roth contribution. it's a conversion. no, the pro-rata rule is not the subjet to taxes on the backdoor roth conversion (not contribution). If your financial advisors will not let you know this, then why are they your financial advisors?
Anyone else find the use of "zoom" as a visual effect to be a distraction from the content? Erin, a suggestion: give the zoom button a break.
it's more engaging than a static picture, but maybe sometimes she chooses the wrong speed or zooms across too wide of a range
Thank you for this comprehensive overview of options for the 401K and for covering the Rule of 55. Though I've had an active career path and several 401Ks, I did not know about the rule of 55, so I moved them all into an IRA. It's ok now, I'm past 59.5 years old. I'd be curious about your opinion/evaluation of the annuity offered to Federal Government retirees who have invested in the TSP program, if you feel any differently about it than other annuity options.
Did I miss, roll into your current employer's 401k if you like them?
I wish I could leave my job.
Free country
Plenty of jobs out there. Start looking and let your friends and family know you want a job change.
@@ItsEricAZ Anxiety issues.
@@EricMoore790 You are strong enough to deal with it. Perhaps taking a day or two off and getting to the mountains for a night in a cabin, on the beach, or just chasing cows will help rid you of some of this stress and clear your mind.
I've cashed out every one of mine lol...Glad I did. You only live once... just cashed out another one, awaiting payment. You guessed it...I don't trust the system 😂🤑
You be working forever
Hopefully you are relatively young (under the age of 30) so you can recover from this in the future.
Foolish.
@@lalew2 Nah, everything is paid off, no debt.
@@ec5657 46 and living the life my friend