Elizabeth Ayoola

Two, how can I evaluate the performance of these previous employer accounts against, say, my current 401k employer-backed provider to see who is giving me the most for my money?

For example, T. Rowe Price, Vanguard, Fidelity.

The listener has another question, but I say we tackle these two first.

Now, Sam, the crux of the question is about a 401k rollover.

Now, it's so easy to end up with multiple when you're changing jobs, but let's start with the basics.

What's a 401k rollover?

Let's shimmy on over to part two of Doug's question, and it has to do with the perk their employer offers.

Here it goes.

After an individual reaches the IRS 401k pre-tax maximum for the year, my employer will continue to match the same contributions I make just to an after-tax investment, same fund, just after taxes.

As I understand it, this is perhaps somewhat rare.

My question is around what I discovered some colleagues have been doing.

They max out their 401k pre-tax contributions, then start the after-tax matching account, but then twice a month they somehow convert those funds or realize the gains in such a way that they are only paying taxes for the two weeks the contributions are in the after-tax account.

My understanding is that this is called something like an after-tax backdoor IRA, where the after-tax funds, once converted into some sort of IRA and the two weeks' worth of taxes are paid, grows tax-free.

After I heard about this, my head started spinning, not only with the implications, but also with how time-intensive that must be to individually manage.

Have you heard of this?

And is it a good idea?

Too complicated?

Or worth the trouble?

Well, Sam, now I want to ask you personally, do you think they are worth the headache?

In my opinion, yes, they are, because I don't want to give Uncle Sam any more of my money.