[Aimee]

Need to check the hive mind to see if I’m thinking correctly. I have the opportunity to rollover an old 401k to my current 403b, both with the same employer. This option would be better than opening my own rollover IRA if I want to do backdoor ROTH later in life correct?

For reference, accounts are at Fidelity and employer’s options/expense ratios in the 403b are good.

Thank you everyone for their help!

[Christopher]

Correct, keeping it in the 401k or moving to 403b will leave a future backdoor Roth conversion low-tax. If the plan fees are onerous, rolling to an IRA may be appropriate, but it doesn’t sound like you’re in such a situation.

[Michelle]

Yep, I’d roll to your employer plan, just to keep that backdoor option open for later.

[Bill]

How “good” is good for expenses and funds? And how likely are you to ever do a back door Roth?

If it’s $10 in fees and you are on track to exceed Roth limits, then it’s a good plan.

If it’s $500/year and you are say, a teacher, who is unlikely to ever make a really high salary, then that’s a different story.

[Jordan]

What I’m doing is transferring my 401(k) to a traditional IRA of my own and then doing the back door into my Roth slowly but surely making sure I only contribute enough to be able to afford the taxes on that particular year.

That’s my recommendation.

[Author]

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