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Roth 401k with profit sharing assest allocation

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  • Roth 401k with profit sharing assest allocation

    I have a Roth 401k with profit sharing but my groups plan doesn't allow me to specify what I want to put the roth funds in vs the tax deferred funds.  Whats the best way to maximize the Roth in a plan like that?

  • #2




    I have a Roth 401k with profit sharing but my groups plan doesn’t allow me to specify what I want to put the roth funds in vs the tax deferred funds.  Whats the best way to maximize the Roth in a plan like that?
    Click to expand...


    That's a tad bizarre. So, assuming you put $18k into a Roth, you have no control over your portfolio, but you do if you choose tax-deferred? I suppose you might want to check what "the group" chooses for your allocation before you select the Roth option.
    Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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    • #3




      I have a Roth 401k with profit sharing but my groups plan doesn’t allow me to specify what I want to put the roth funds in vs the tax deferred funds.  Whats the best way to maximize the Roth in a plan like that?
      Click to expand...


      Actually, you should have your group have the TPA amend the plan to allow that.  Really simple, absolutely no reason not to allow that, as it costs nothing. This tells me one thing: chances are the TPA is not that great, and/or it might be a very old plan that most likely needs some serious updates.
      Kon Litovsky, Principal, Litovsky Asset Management | [email protected] | 401k and Cash Balance plans for solo and group practices, fixed/flat fee, no AUM fees

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      • #4
        This is usually a platform problem. Unfortunately, there are still too many plans where you can only specify one set of allocations across all sub accounts.

        As Kon said this is an administrator problem. If it is internal, they need to get with the times. If they are using a third-party platform, they need to hold their platform provider's feet to the fire. If they won't, maybe a new TPA is in order.

        Now of course, this is not something an individual participant can change. However, if enough people complain to those responsible, maybe a change can happen.

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        • #5







          I have a Roth 401k with profit sharing but my groups plan doesn’t allow me to specify what I want to put the roth funds in vs the tax deferred funds.  Whats the best way to maximize the Roth in a plan like that?
          Click to expand…


          That’s a tad bizarre. So, assuming you put $18k into a Roth, you have no control over your portfolio, but you do if you choose tax-deferred? I suppose you might want to check what “the group” chooses for your allocation before you select the Roth option.
          Click to expand...


          we have an assortment of options to choose from.  I just meant I can't specifically put the $18k I have in the Roth allotment in Fund X and the company match allotment (which is tax-deferred) to Fund Y.  Its all in one big pot.

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          • #6










            I have a Roth 401k with profit sharing but my groups plan doesn’t allow me to specify what I want to put the roth funds in vs the tax deferred funds.  Whats the best way to maximize the Roth in a plan like that?
            Click to expand…


            That’s a tad bizarre. So, assuming you put $18k into a Roth, you have no control over your portfolio, but you do if you choose tax-deferred? I suppose you might want to check what “the group” chooses for your allocation before you select the Roth option.
            Click to expand…


            we have an assortment of options to choose from.  I just meant I can’t specifically put the $18k I have in the Roth allotment in Fund X and the company match allotment (which is tax-deferred) to Fund Y.  Its all in one big pot.
            Click to expand...


            Ok, I think we misunderstood the question.  Yes, I don't believe you can direct Roth or tax-deferred into a specific fund, because all of the money types in a single account, that's correct.  For example, Vanguard individual 401k has Roth and tax-deferred as separate, but this is a nuisance anyway because there is no need to keep the money types separate, especially not inside a 401k plan.
            Kon Litovsky, Principal, Litovsky Asset Management | [email protected] | 401k and Cash Balance plans for solo and group practices, fixed/flat fee, no AUM fees

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