Interesting. What would I have to pay to convert from a traditional to Roth set up? If usaa is not a good option, are there others y’all recommend researching?
I have no clue about USAA and their IRA options or any trading platform they may have. So I am not recommending anyone. but you could have that IRA at say Fidelity, Schwab, ETrade, Interactive, and they all have great platforms for trading. And all of them have zero cost platforms.
Regarding converting to a Roth vs traditional IRA. On the surface, you would have to pay the income tax on the amount of the 401K upfront if rolled into a Roth, b/c all that money was pre tax. However someone mentioned somewhere else that they might have spread that tax over a few years in this Treasury package. If you go into traditional it cost zippo b/c you are going from pre tax 401K to pre tax IRA So my thoughts are kind of this. Let's say it is not a ton of money, but it is YOUR money. If you are willing to pay the tax immediately, then whatever value that the Roth becomes over the next hopefully 30+ years will all be tax FREE. Remember what the idea and thought was by the government when they enacted 401K's , IRA's etc. When you start at a young age, usually you are in the lower tax bracket, so your tax rate is lower. But by the time you begin drawing your Required Minimum Distribution.you will probably be in the top bracket or one a lot higher than when you first started saving. so even though you have more money, the governement gets much more in taxes than they would have had they taxed you many many years ago on a smaller amount