Rollover 401k ?!

#1

I have a 401k with Trowe Price from a former employer with about 30k in it. Should I roll it over to a traditional Roth with my current brokerage, Fidelity and get target date index funds there?

Outside Trowe, as of right now, I have a individual brokerage account with Fidelity (3 fund index portfolio) as well as 457b plan that is invested in a target date index.

I can’t open a Roth IRA because of my income limit so maybe even rollover the 401k to traditional roth then a back door Roth ?

I obviously don’t contribute to 401k anymore but it’s been yielding a 11.7% annual return.

I currently have everything in T. Rowe Price Retirement 2055 Tr-C — S&P Target Date 2055 TR

#2

If you are doing a backdoor Roth IRA: Rolling it over to a rollover IRA is a good idea if you can then roll it over to your new 401k. Otherwise it would best to keep it in your old 401k. The reason for this is due to the pro rata & aggregation rules. Since you are a high income earner I think this is worthwhile to learn more about, and maybe even hire a CPA, as this is mainly tax related.

Your 401k rollover money and your backdoor Roth money are unrelated, in the sense that your 401k money could not end up as part of a backdoor Roth.

Also… a “traditional Roth” doesn’t make sense because there are 2 types of traditional accounts and 2 types of Roth accounts: IRA vs 401(k) and Roth vs traditional – Personal Finance Club

Hope that helps!