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<blockquote data-quote="satellitedriver" data-source="post: 1221314" data-attributes="member: 1664">The devil is in &quot;the details&quot;, Dave.First off, when you rollover a 401k worth $200K into a Roth IRA you will have to pay Uncle Sam $50,000, due to the 25% effective tax rate.You can not touch that $150K for 5yrs, without penalty. You can not touch that $150K before the age of 591/2, without penalty.Add the expense fees paid to a financial adviser-(avg 1.5% yearly for a managed acct.) to the equation.Those are the details that can put a hole in your financial boat.The expense fees in our 401k plan for target date retirement-(bright horizon funds)- are 0.1%.When one does the math it is often better to leave the monies in the tax exempt 401k until 591/2yrs old, then take distributions, at a lower effective tax rate, and use those funds to fund an ROTH IRA.The common wisdom is that the tax advantages for a ROTH start declining after the age of 45yrs old.I wish you well. At least you have a plan, unlike 80% of the people I know.</blockquote>

[QUOTE="satellitedriver, post: 1221314, member: 1664"] [COLOR=#006400][B]The devil is in "the details", Dave. First off, when you rollover a 401k worth $200K into a Roth IRA you will have to pay Uncle Sam $50,000, due to the 25% effective tax rate. You can not touch that $150K for 5yrs, without penalty. You can not touch that $150K before the age of 591/2, without penalty. Add the expense fees paid to a financial adviser-(avg 1.5% yearly for a managed acct.) to the equation. Those are the details that can put a hole in your financial boat. The expense fees in our 401k plan for target date retirement-(bright horizon funds)- are 0.1%. When one does the math it is often better to leave the monies in the tax exempt 401k until 591/2yrs old, then take distributions, at a lower effective tax rate, and use those funds to fund an ROTH IRA. The common wisdom is that the tax advantages for a ROTH start declining after the age of 45yrs old. I wish you well. At least you have a plan, unlike 80% of the people I know. [/B][/COLOR] [/QUOTE]

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