Big_Hitter
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
tough to get a decent stable value fund outside of a 401k
OP might also look up how the company 401k ranks among its peers.
https://www.brightscope.com/ratings/
IMO creditor protection is so far down on the list of things to be considered as to be negligible.
Someone posted on here a while back about keeping a 401K as that and not rolled into an IRA because it changes the basis of your taxation for rollovers to a Roth. I may have that completely wrong. Does anyone know what I am talking about?
tough to get a decent stable value fund outside of a 401k
Hmm..
Are you paying for liability insurance every year to guard the money that could be at risk? I'd rather be 'uncollectable' under Federal law with the funds in retirement accounts.
Remember a lawsuit against you that you loose or choose not to defend is then a creditor protection issue.
Perhaps less of an issue if folks have the majority of their wealth in non-retirement funds/assets.
-gauss
sounds like you are talking about backdoor Roth contributions/conversions.
If you leave the 401K alone, your conversions may be tax free. If you roll a
large 401K into your TIRA, that could make the Roth conversions of non-deductible contributions, almost fully taxable. A good reminder for those who plan to do it.
I've never beeen sued (I've also never sued anyone). I have $2m in umbrella coverage that I would carry irrespective of whethr or not my IRA is available to creditors. Therefore, risk is negligible.
I don't see what your point is.
Someone posted on here a while back about keeping a 401K as that and not rolled into an IRA because it changes the basis of your taxation for rollovers to a Roth. I may have that completely wrong. Does anyone know what I am talking about?
Tough? I thought it was impossible. Got tickers?
Another advantage of my work retirement account is that they have a NO FEE Fixed Interest Fund that pays 3% (has paid 4% at times in the past as well). It has no expense ratio associated with it nor does any investment in it require the plan administration fee.
I didn't see anyone mention this...
but I have a government 457B plan, and you don't have to worry about being 59 1/2 or the rule of 55, either one, to withdraw. I can take distributions at any age penalty free. If I were to move that into a regular traditional IRA, I couldn't take penalty free distributions until age 59 1/2, except under certain conditions like 72(t). ...
Perhaps nobody mentioned that because the OP and title of the thread refers to pros/cos of keeping 401k.
I've never beeen sued (I've also never sued anyone).
I've never had my house burn down, but that doesn't keep me from protecting myself against the possibility. The fact it has never burned down in the past is irrelevant.
I've never beeen sued (I've also never sued anyone). I have $2m in umbrella coverage that I would carry irrespective of whether or not my IRA is available to creditors. ...
I'm guessing the OP isn't the only one reading responses to this thread and that I'm not the only one with this choice/option. It's just another type of employee retirement program that I bet others here have. In fact, you often see people use the term "401k" loosely when they mean the host of other employer based plans, such as 457B, 401a, 403b. Over the last 18 years, I've even heard fellow employees often call our plan a 401k. We don't even have a 401k. Happens all the time.
The FEE FREE fixed interest fund that I mentioned isn't unique to 457B and can exist in 401K plans as well.
+1 access to a stable value fund is a great reason to stay with a 401k.
Dtail is lucky to have access to a stable value fund that pays a very handsome rate... I'm jealous.
You can make after tax contributions to a 401k? I didn’t know that.I have posted in the past that for a 401k plan, the plan administrator is responsible for tracking and reporting any after tax basis in the account.
Once the funds are transferred to an IRA, the responsibility falls to the individual.
The transactions that make up this tax basis often take place decades in the past. I see this all the time at our volunteer tax site. The widows often have no idea if there is any taxable basis in the IRA so 100% of their withdrawals are taxed. This is not an issue with 401k/DB pension plans.
-gauss
+1 access to a stable value fund is a great reason to stay with a 401k.
Dtail is lucky to have access to a stable value fund that pays a very handsome rate... I'm jealous.