I am fortunate to have a governmental 457 and a governmental 401K, both pre-tax. Both of these have good self-directed retirement account options and each has an additional annual cost of <0.01%. I am also permitted to roll over a portion of either into my traditional IRA while I work, and of course, after I retire I may roll either or both into a traditional IRA, and I'm also permitted to roll the 457 into the 401K or vice versa.
My question is what are the pros and cons of the different options. Should I just consolidate both into my current traditional IRAs for convenience? Are there compelling benefits to either the 457 or the 401K that might make me want to keep one or the other? Is there a difference between the 457 and the 401k with regards to back door Roth conversions that avoid worrying about pro rata rules?
I'd appreciate any and all thoughts. thanks!
My question is what are the pros and cons of the different options. Should I just consolidate both into my current traditional IRAs for convenience? Are there compelling benefits to either the 457 or the 401K that might make me want to keep one or the other? Is there a difference between the 457 and the 401k with regards to back door Roth conversions that avoid worrying about pro rata rules?
I'd appreciate any and all thoughts. thanks!
Statistics: Posted by skillstacker — Thu May 23, 2024 2:02 pm — Replies 4 — Views 143