Rollover 401K

Hi! I have a new job and setting up my 401k.

I have $10k from a previous employer retirement. I already have a separate vanguard ROTH IRA (not maxing out quite yet). And a Vanguard Rollover IRA with other previous company retirement money in there.

Where should I rollover this $10K? To Vanguard or to my current company retirement? Or any other thoughts?


Hi, if you are not yet at the point of having to do a backdoor Roth IRA, and since you already have a rollover IRA, I would put the money in the rollover IRA. Because your current company’s 401k most likely has higher fees.

Once you do get to the point of having to do a backdoor Roth IRA, I would move all the rollover IRA money into your current company’s 401k. This is to address the pro-rata rule which you can probably read up on in other posts!!

Hope that helps :slight_smile:

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Thanks Vivi! This is very helpful! I’ll dig into the pro rata rule as well. :slight_smile:

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