Fee to roll over a 401k to an IRA?

[grumpy]

I will finally take the plunge into full retirement on Sep. 30th after two years of part time work. Today, I called Prudential ( the 401k provider for the company I have been working for) to find out what forms to use to roll the account over to a Vanguard IRA. They told me there would be a $35 transfer out fee. Has anyone heard of this? Is it common practice?

I recently rolled my wife's 403(b) account from Vanguard to a T. Rowe Price IRA and there was no transfer out fee.

Are we being ripped off or is this routine? Thanksl

Grumpy

 

[brewer12345]

Sounds like a rip-off to me. Personally, I would probably just pony up and be done with it, since I doubt you will be able to get out of paying it.

 

[KB]

I rolled a 401K into a Vanguard account by doing the paperwork through Vanguard. No fee for my rollover. Maybe it's just a paperwork fee from Prudential. You might check with Vanguard and see if they can do the paperwork and whether there is a fee attached from their side.

 

[ats5g]

grumpy,

401(k)/403(b) providers put these fees (transfer fees, back end loads, etc.) in place to deter people from rolling over to an IRA. Little do the participants know how much staying with the 401(k) is costing them. I'd pay it. You'll likely make up that fee within the first year with lower expenses at Vanguard.

- Alec