Should I roll my IRA (36.18% YTD) into my 401k (17.89% YTD)?

  • This topic is empty.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • #112266 Reply
    Ana

      Hi all, thinking about rolling my current Traditional IRA into my 401k so I can start doing immediate IRA to Roth conversions (the current pro rata rule would affect these if I leave the traditional IRA open).

      Issue is when I see the YTD Rate of Return, my IRA is at 36.18% while my 401k is at 17.89%. Looking at these numbers, does this even make sense?

      Caveat: I’m assuming the pro rata rules applies only to conversions not direct contributions (my income may fall below the threshold in next few years and I can make direct contributions).

      More details: I plan to move to another country for the short term with possibility of going back to work in another country / USA in the next 2-4 years. Could leverage conversions at this time.

      Thank you for any insight.

      #112267 Reply
      Amy

        Your return has to do with what assets you’re invested in and their fees, not what account those investments sit in.

        Your IRA and 401k have different returns because they’re invested differently.

        #112268 Reply
        Jule

          What are you invested in those accounts? If your 401k allows for self managed, you could likely mimic your asset allocation.

          #112269 Reply
          Goska

            I’m exactly in the same situation.
            The investment options at my employer suck. I have a 403b at TIAA and there are no ETFs

            I do have VINTX with my employer but this is the only reasonable investment option.

            I’m concerned that if I put my rollover IRA there, most of my retirement savings would be in one index fund.

            Is it better to pay taxes on the backdoor Roth conversion?

            #112270 Reply
            J.C.

              Those ‘numbers’ are due to what investments you have chosen in those accounts. That’s on you.

              The accounts are not providing those returns, the investments inside them are.

              #112271 Reply
              Kyle

                You’d have to tell us the holdings of each account, more than likely the 401 is a target date fund?

              Viewing 6 posts - 1 through 6 (of 6 total)
              Reply To: Should I roll my IRA (36.18% YTD) into my 401k (17.89% YTD)?
              Your information:




              Spread the love