401k rollover

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KnappShack

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Switching jobs after a rather long time at one place, and I need to move my 401k. For those of you that have done this, what did you do? Move it into the new employers account or move it to something like etrade, ameritrade, vanguard?

I rolled into Fidelity. Super easy.

I also have a 401k that I'm keeping where it's at. I love the investment options and the fees are reasonable.
 
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CascadeClone

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I'd recommend rolling over to an IRA at one of the biggies - Fidelity, T Rowe, Vanguard, whichever you prefer. Easier for any future rollovers, you have a "plan B" that is all yours.

If you roll it into your new company 401(k) you may need to roll it out again someday. Plus you can pick your investments 100%, not just have to accept what the new employer has chosen for you (although it's probably all fine).
 
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ricochet

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I'll echo the recommendations about rolling it into an IRA but throw out a couple of reasons you might consider keeping it in a 401(k) - either with your new employer or your old employer. The bankruptcy protection is better with a 401(k) vs an IRA although I think you need quite a bit of money for it to matter. The second is I think you can take money out of a 401(k) penalty free at 55 if you lose your job, but need to wait until 59 1/2 with an IRA. Of course I'm just some random CF poster I could be totally wrong.
 
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keepngoal

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My experience is... it depends on the fees and then the investment options.
 
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dmclone

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If this means anything, I work at a company(20 years) that is one of the largest 401k providers and I moved my old 401k's to an IRA. Nothing against how they administer 401k's, an IRA is just a better option IMO.
 

BLHawk

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The second is I think you can take money out of a 401(k) penalty free at 55 if you lose your job, but need to wait until 59 1/2 with an IRA. Of course I'm just some random CF poster I could be totally wrong.

This depends on the provisions that the employer offers in their plan.

It is usually 59.5 at a minimum to withdraw and avoid the penalty if you are taking it as cash.
 

JY07

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I'd put it in an IRA opposed to the new company's 401k:

If the IRA is with one of the larger firms they likely have great investment options that are free that your 401k would be miles away from competing with.

Even if the 401k does have options with low expense ratios, there's likely fees on top of that.
 
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Trice

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I'd put it in an IRA opposed to the new company's 401k:

If the IRA is with one of the larger firms they likely have great investment options that are free that your 401k would be miles away from competing with.

Even if the 401k does have options with low expense ratios, there's likely fees on top of that.

That's the key point I was trying to make earlier...in addition to the fund fees you pay there are probably plan admin fees taken out as well. And it's taken out the same way mutual fund expenses are, generally invisible to plan members. Most people have no idea they're paying them and some can be quite high. In general, the smaller the company or plan, the more fees are passed on to you.
 
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LarryISU

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I have always left 401k money with my former employers. (They were large companies). Main reason is the ease of changing investments. I know you are not supposed to time the markets, but I have done so with pretty good results by leaving my funds in the 401k. When I see a potential bear market coming, I go online and transfer, that day, money from the market into the guaranteed fund or whatever option your 401k provider offers that doesn't lose value. So I am earning maybe 3% on that money but when the market tanks, I lose nothing. Then when the market is going to recover, in one day I can move back into some stock funds.

But maybe you can do the same with IRAs as long as they are all in one fund family. As my 401k plans offer 20 to 30 options for investing, I have always had good choices available and just liked the freedom to move money so easily online.
 

dmclone

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I have always left 401k money with my former employers. (They were large companies). Main reason is the ease of changing investments. I know you are not supposed to time the markets, but I have done so with pretty good results by leaving my funds in the 401k. When I see a potential bear market coming, I go online and transfer, that day, money from the market into the guaranteed fund or whatever option your 401k provider offers that doesn't lose value. So I am earning maybe 3% on that money but when the market tanks, I lose nothing. Then when the market is going to recover, in one day I can move back into some stock funds.

But maybe you can do the same with IRAs as long as they are all in one fund family. As my 401k plans offer 20 to 30 options for investing, I have always had good choices available and just liked the freedom to move money so easily online.

Two things.

1. I have an IRA through a large brokerage. I can literally invest my IRA in anything I want, not just the 20 or so options you have in your 401k. Hell I could put 100% of my IRA in pork bellies if I wanted. I can also do this online in a matter of seconds.

2. Unless you're some .01% financial genius, market timing doesn't work. You may tell yourself that it works but over the long term, it doesn't. If you are in that .01%, can you you give me some guidance on the top and at which point I can get back in?
 

CtownCyclone

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Two things.

1. I have an IRA through a large brokerage. I can literally invest my IRA in anything I want, not just the 20 or so options you have in your 401k. Hell I could put 100% of my IRA in pork bellies if I wanted. I can also do this online in a matter of seconds.

2. Unless you're some .01% financial genius, market timing doesn't work. You may tell yourself that it works but over the long term, it doesn't. If you are in that .01%, can you you give me some guidance on the top and at which point I can get back in?

Not to slow your roll or anything, but I'm hearing good things about futures of frozen concentrated orange juice. Might want to get in quick.
 

Trice

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Two things.

1. I have an IRA through a large brokerage. I can literally invest my IRA in anything I want, not just the 20 or so options you have in your 401k. Hell I could put 100% of my IRA in pork bellies if I wanted. I can also do this online in a matter of seconds.

2. Unless you're some .01% financial genius, market timing doesn't work. You may tell yourself that it works but over the long term, it doesn't. If you are in that .01%, can you you give me some guidance on the top and at which point I can get back in?

That's why it makes no sense to me to leave it in an old employer's plan. Whatever options you've got there you almost certainly have in an IRA. Hell, if you like the 401(k) provider so much, roll it over to an IRA with that same company. At least then you know exactly what you're paying.
 

GoCy

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I am a big fan of moving it to an IRA at a low cost broker. Many 401k plans have high fees or and high expense ratio funds populating the plan. Even if they have a good plan now, that could change at any time in the future, and then your rollover money is stuck in that plan.

I would check with your future employer to see who they are using as a broker. If it is one of the big low cost brokerages, I would consider moving to an IRA with that company. I have my 401k and IRA with Vanguard, and while they are different accounts, they are linked to the same logon and web interface for simplicity.
 

Pat

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This depends on the provisions that the employer offers in their plan.

It is usually 59.5 at a minimum to withdraw and avoid the penalty if you are taking it as cash.

1) I’ll go one step further: some 401k are darn near impossible to get money out of. The rule of 55 should never affect you if you have some non-qualified savings (which you should).

2) Never come to CF for financial advice. The amount of misinformation in this thread is astounding.

3) Seriously, though, roll it to an IRA. That puts it in your control, not your former employer.
 

VeloClone

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Not to slow your roll or anything, but I'm hearing good things about futures of frozen concentrated orange juice. Might want to get in quick.
v1.bjsxODQ5Mjg7ajsxODEzNzsxMjAwOzEyMDA7OTAw
 
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BLHawk

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Even if they have a good plan now, that could change at any time in the future, and then your rollover money is stuck in that plan.

1) I’ll go one step further: some 401k are darn near impossible to get money out of. The rule of 55 should never affect you if you have some non-qualified savings (which you should).

These points are completely false when it comes to rollover assets.

Pretty much every employer sponsored plan is going to let you take your rollover money out at anytime.
 
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