Hey WCI community!
I've spent the last 3-4 months delving into many of the topics on this amazing website (Thanks Dr. Dahle!), and getting my finances in order. I have a quick question about the individual 401k for the sole purpose of obtaining a place for future rollovers (so to be able to participate in a backdoor Roth IRA in a few years). I am currently in residency - and will likely be able to contribute to a Roth IRA for the next 2-3 years, but will then want to use the backdoor Roth. I am moonlighting now, and this is done through an independent contractor (1099 tax form). My questions are:
1. Do I even need to open up an individual 401k at this time? I won't be able to contribute to it (still working on maxing out my 403b through work, and I am maxing out my Roth IRA). Or should I expect to have a place to rollover my 403b money in the future and not worry about it.
2. Where is the best place to open one up? I heard a rumor that Vanguard does not allow for outside rollovers into their i401k. Is there a minimum balance I must maintain to keep the account open?
Thanks!
Dan
I've spent the last 3-4 months delving into many of the topics on this amazing website (Thanks Dr. Dahle!), and getting my finances in order. I have a quick question about the individual 401k for the sole purpose of obtaining a place for future rollovers (so to be able to participate in a backdoor Roth IRA in a few years). I am currently in residency - and will likely be able to contribute to a Roth IRA for the next 2-3 years, but will then want to use the backdoor Roth. I am moonlighting now, and this is done through an independent contractor (1099 tax form). My questions are:
1. Do I even need to open up an individual 401k at this time? I won't be able to contribute to it (still working on maxing out my 403b through work, and I am maxing out my Roth IRA). Or should I expect to have a place to rollover my 403b money in the future and not worry about it.
2. Where is the best place to open one up? I heard a rumor that Vanguard does not allow for outside rollovers into their i401k. Is there a minimum balance I must maintain to keep the account open?
Thanks!
Dan
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