On the topic of backdoor Roths and strategies to clear out pre-existing IRAs. Jim has mentioned several times that Vanguard doesn't allow IRA rollovers to an Individual 401(k). I was looking into this a bit more and found some further explanation.
https://thefinancebuff.com/vanguard-solo-401k-rollover-from-ira.html (read the comment section from the link)
So, with IRAs there are two components: (1) "THE PLAN" and (2) "THE ACCOUNT." Each of these has different rules. So the Vanguard 401(k) PLAN does allow for rollovers, but the Vanguard 401(k) ACCOUNT does not. I thought that was enlightening. Would be interested in others' comments. It just bugs me to have to use yet another separate brokerage (Fidelity or Schwab) since I've got all the rest with Vanguard.
https://thefinancebuff.com/vanguard-solo-401k-rollover-from-ira.html (read the comment section from the link)
So, with IRAs there are two components: (1) "THE PLAN" and (2) "THE ACCOUNT." Each of these has different rules. So the Vanguard 401(k) PLAN does allow for rollovers, but the Vanguard 401(k) ACCOUNT does not. I thought that was enlightening. Would be interested in others' comments. It just bugs me to have to use yet another separate brokerage (Fidelity or Schwab) since I've got all the rest with Vanguard.
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