Wow. First few steps:
1.) Get all 401ks combined into your current employers 401k.
2.) Get cost basis information for current taxable account, along with amount of gains in short term and long term positions.
3.) Stop auto reinvestment of divdents/interest on taxable account, ensure that is rolling into your core fund/MM fund.
4.) For now, you can put all new rollover money into the fidelity target date fund in your 401k and circle back here once the above is completed with new information per the above.
Ideally, you would end up transitioning your taxable brokerage into a split of Vanguard total stock and Vanguard international ex-US, and then balance your asset allocation holding all the bonds you want in a diversified Intermediate term high quality bond fund in your 401k, with the rest of your assets split between a US stock index fund and a Ex-US stock index fund.
You do not want to hold a target date fund in a taxable account due to the bonds inside that account creating additional tax burden yearly as they kickoff interest taxed at your marginal rate. Let us know how much capital gains is involved in that account before liquidating.
Lastly, be careful of wash sale rules as you start to make changes. You do not want to sell an asset and buy the same exact asset in a different account within a 30 day time-frame per IRS regs.
1.) Get all 401ks combined into your current employers 401k.
2.) Get cost basis information for current taxable account, along with amount of gains in short term and long term positions.
3.) Stop auto reinvestment of divdents/interest on taxable account, ensure that is rolling into your core fund/MM fund.
4.) For now, you can put all new rollover money into the fidelity target date fund in your 401k and circle back here once the above is completed with new information per the above.
Ideally, you would end up transitioning your taxable brokerage into a split of Vanguard total stock and Vanguard international ex-US, and then balance your asset allocation holding all the bonds you want in a diversified Intermediate term high quality bond fund in your 401k, with the rest of your assets split between a US stock index fund and a Ex-US stock index fund.
You do not want to hold a target date fund in a taxable account due to the bonds inside that account creating additional tax burden yearly as they kickoff interest taxed at your marginal rate. Let us know how much capital gains is involved in that account before liquidating.
Lastly, be careful of wash sale rules as you start to make changes. You do not want to sell an asset and buy the same exact asset in a different account within a 30 day time-frame per IRS regs.
Statistics: Posted by Olemiss540 — Thu Jan 11, 2024 5:28 am — Replies 7 — Views 834