I’m 27 years outdated, leaving my employer. I’ve a 401(ok) with round 50k in it, 100% Roth; and I’ve round 25k in Roth IRA. I’m in a profession such that I anticipate all my future employers to additionally provide 401(ok) or different employer-sponsored plan (ESP).
I’m attempting to resolve whether or not to do a rollover to IRA, or simply maintain it within the 401(ok) probably to roll right into a future ESP.
My present understanding of the choice right here is:
Execs of doing an IRA rollover
I keep away from the account upkeep price [mine happens to be $29/yr]
I acquire entry to non-Employer-selected investments with out paying any BrokerageLink/PCRA/and many others charges
I acquire the flexibility to withdraw a number of the funds very early, penalty-free, for qualifying private/household emergencies
I acquire the flexibility to withdraw a number of the Roth funds very early, tax- and penalty-free, for qualifying first-time homebuying
(Solely applies to Roth portion) If I don’t want the cash once I’m 70+, I can dodge RMDs
Execs of NOT doing an IRA rollover
I retain the flexibility to make penalty-free (and, for Roth funds, tax-free) withdrawals from the funds if I occur to retire between age 55 and age 59½
I retain federal legal responsibility protections on the Roth portion, in case I get sued in Georgia, Idaho, Nebraska, Mississippi, Montana, West Virginia, California, Maine (Roth IRA stability over $15k), Pennsylvania (Roth IRA stability over $15k), Minnesota (Roth IRA stability over $69k), North Dakota (Roth IRA stability over $100k), or Nevada (Roth IRA stability over $500k)
I retain entry to any personal Employer-selected investments [e.g., my immediately previous employer happens to have exceptionally low-expense-ratio target date funds]
I retain the flexibility to make use of the funds to again an ESP mortgage, if relevant sooner or later
(Solely applies to Pretax portion) I don’t “contaminate” my IRA with Pretax funds, which may trigger issues if I ever needed to make a non-mega “Backdoor Roth” contribution sooner or later
I retain full optionality. I can at all times simply do an ESP-to-IRA rollover sooner or later if I alter my thoughts, and just about all ESPs settle for plan-to-plan rollovers. Nevertheless, Roth IRA funds can by no means be rolled again into an ESP, and a future ESP won’t enable a “reverse rollover” of Pretax IRA funds.
Have I missed something, or acquired something fallacious right here?
