I currently have ~$1M in investments across my taxable account, Roth IRA, and 401k. They're all mirrored, each containing 60/40 VTI/VXUS. Up till now, I'd avoided international investments in my 401k, but they recently changed their international fund to be much better (although it still excludes China and Hong Kong).
Because the dividend drag on international seems to outweigh the FTC, it seems it would be most tax efficient to place international in the tax-advantaged accounts (401k) and use my taxable for rebalancing. Is this worthwhile? AI says it would come out to a difference of +$46k at 10 years, $216k at 20, and $650k at 30 based on compounded tax savings. Any thoughts?