re: Rolling over 401K to new job

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I believe he is making the point that IRAs are also protected during bankruptcy, albeit up to a certain amount.

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Under the OP scenario the entire thing would be protected.

But of course I'm wrong. Apologies to everyone.

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Under the OP scenario the entire thing would be protected.

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Sure his small balance in 2014 would be protected, but what happens in 2045 when that number has grown outside the protection limit?

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You've been wrong now several times.


False

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No they don't. You're a liar. I've never seen one company plan that will let me invest into 20 different equities of my choice.

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My current plan is one. Another poster on page 2 has now said his offers this option.

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ETA: Ever looked at a Roth balance vs a traditional IRA balance after 20-30 yrs?


Of course I have. I've been doing this for a living for 20 years. And fyi, the balances are exactly the same. Taxability is another matter entirely.

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If he pays taxes on the money in the Roth conversion, the balances (in your definition) will most certainly not be the same.

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401k loans offer 2 indisputable advantages, ability to borrow against, and full protection from bankruptcy.


I can't tell you how many times I've seen an IRA snatched away from a person in the event of bankruptcy.

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Your statement is true, IRAs are bankruptable under certain conditions, but which is why I said that 401ks are fully protected, not IRAs.

These are some examples where you've been wrong. Which is why the OP should take all this information and do his own research.

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If he pays taxes on the money in the Roth conversion, the balances (in your definition) will most certainly not be the same.

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Good God almighty. You know the shite that shows up in his bank when he takes a distribution isn't called "THE BALANCE" right?

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Yes, and they would clearly be different. Do you still dispute this?

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I absolutely dispute it

So let's do a calculation.

$20,000, 5% compounded annually for 30 years.

If he rolls into a trad/401k he ends up with $86,438.85


If he rolls into a Roth and pays the tax out of pocket he ends up with $86,438.85

If he uses the balance and his tax bracket is 15% he ends up with:

$73,473.02

Which is what I've been saying all along. You want to throw taxation into a discussion about balance. And you're wrong.

Your quote:

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ETA: Ever looked at a Roth balance vs a traditional IRA balance after 20-30 yrs?

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He pays the tax when he rolls into the Roth, which is right now. So he doesn't have $20,000 anymore

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I gave both scenarios actually. You implied that the Roth balance would be higher, when in fact, it would be lower.

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Maybe the confusion has arisen from you taking my use of "balance" in that post and interpreting it outside of the thread.

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Or maybe it's because you used "balance" in a way that no person who has a brokerage account would ever use it. "Broke, what's my balance?". You get $1,800 a month into your bank account". "I asked you what my balance was". "OHHHHHHHHHH, that's $942,499"

I go by what a man writes, not what he wants it to mean. You don't call a bank for a balance and they tell you how much money you pulled out yesterday.

The Roth distributions may indeed be more beneficial but as I stated before, I don't have enough information to make that call.

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on top of being an a-hole

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I would put this first if I were you.

You have a lovely day Sigma.





*I'm kind of tired of arguing about this actually.

You're going to have no issues there but you might, might be able to squeeze him for a few bucks out of this. But make sure there isn't another buyer that could slide in and snake you guys. That would be a really shitty Christmas

I agree with Sigma. I'm not an engineer or financial planner... I've work at Florsheim Shoes at the mall for 19 years now and have save a nice little $$$$ egg. I read Money magazine too.