Researched that topic when my wife 401K best plan was SP500 index with whopping 1.5%ER (and the rest were managed funds with 2% ER or similar). For normal tax brackets and 10 year stay in the company break even point was around 1.7% ER, so as much as these ERs are a pathetic rip off, go with 401K. Eventually you will roll it over into something better.
Our story is also about pain of rollover. As soon as wife lost a job I got it immediately to roll to Vanguard rollover. Then we could not do backdoor so when she found a job we did reverse rollover to new 401K. Each time check bounces for a month between provider. Last such bounce was in December, on half a million balance during this market rise we lost several K. Hard to believe that in 2023 they cannot execute transfer between 401K and IRA electronically or in some way more efficiently.
Our story is also about pain of rollover. As soon as wife lost a job I got it immediately to roll to Vanguard rollover. Then we could not do backdoor so when she found a job we did reverse rollover to new 401K. Each time check bounces for a month between provider. Last such bounce was in December, on half a million balance during this market rise we lost several K. Hard to believe that in 2023 they cannot execute transfer between 401K and IRA electronically or in some way more efficiently.
Statistics: Posted by vshun — Thu Feb 29, 2024 5:01 pm — Replies 20 — Views 1086