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Help with Old 401k rollover?
Old 01-13-2019, 07:07 AM   #1
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Help with Old 401k rollover?

Hello, just wanted to get some advice on my current situation.
Iíve got a past 401k that Iíd like to rollover somewhere so I can continue to contribute. It was a long turn job of about 18 years and has roughly 350k in it.

I have a Roth IRA through Betterment and was considering rolling it over there, although as this is almost my entire nest egg. The eggs in one basket thing does scare me a bit.

My new jobís options are slim as there best 401k fund is a vanguard S & P index fund admiral which currently is my only fund Iím in. My yearly contributions at 12%.

I would love some advice on where to rollover that 350k. I love the idea of low cost index funds, all advice is welcome. Thanks in advance
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Old 01-13-2019, 07:17 AM   #2
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We have taxable accounts with Fidelity and Schwab and our Roth IRAs with Fidelity. My husband's 401k is with Vanguard. Of the 3, I prefer Fidelity and Schwab. Both have low cost index funds and a good selection of NTF funds and commission-free ETFs. You can also buy new issue CDs, commission-free.
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Old 01-13-2019, 07:36 AM   #3
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Does your 401k have a "Stable Value" type fund in it? Some folks who have one, like to maintain their 401k, as this option can be a portion of one's fixed income allocation. This type of account doesn't exist outside of 401k's.
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Old 01-13-2019, 07:42 AM   #4
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Originally Posted by gwraigty View Post
We have taxable accounts with Fidelity and Schwab and our Roth IRAs with Fidelity. My husband's 401k is with Vanguard. Of the 3, I prefer Fidelity and Schwab. Both have low cost index funds and a good selection of NTF funds and commission-free ETFs. You can also buy new issue CDs, commission-free.


Thank you Iíll definitely be looking into those firms
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Old 01-13-2019, 07:44 AM   #5
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Does your 401k have a "Stable Value" type fund in it? Some folks who have one, like to maintain their 401k, as this option can be a portion of one's fixed income allocation. This type of account doesn't exist outside of 401k's.


I donít believe they offer o e of those stable funds. Itís with American funds and currently 100% allocated in one of their target funds
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Old 01-13-2019, 08:17 AM   #6
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Does your 401k have a "Stable Value" type fund in it? Some folks who have one, like to maintain their 401k, as this option can be a portion of one's fixed income allocation. This type of account doesn't exist outside of 401k's.
Brokerages offer money market funds that can be purchased as part of one's investment portfolio, as well as a core fund or cash component that holds money waiting to be invested.
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Old 01-13-2019, 08:20 AM   #7
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Originally Posted by SSMRI74 View Post
Hello, just wanted to get some advice on my current situation.
Iíve got a past 401k that Iíd like to rollover somewhere so I can continue to contribute. It was a long turn job of about 18 years and has roughly 350k in it.

I have a Roth IRA through Betterment and was considering rolling it over there, although as this is almost my entire nest egg. The eggs in one basket thing does scare me a bit.

My new jobís options are slim as there best 401k fund is a vanguard S & P index fund admiral which currently is my only fund Iím in. My yearly contributions at 12%.

I would love some advice on where to rollover that 350k. I love the idea of low cost index funds, all advice is welcome. Thanks in advance
Schwab, Fidelity and Vanguard are the only 3 players with a hack proof guarantee. All three offer low cost index funds. I'd leave AFS sooner than later.

You do possibly lose some legal protection when you roll it out of a 401k. My understanding is that state laws come in to play.
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Old 01-13-2019, 08:30 AM   #8
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Originally Posted by SSMRI74 View Post
Hello, just wanted to get some advice on my current situation.
Iíve got a past 401k that Iíd like to rollover somewhere so I can continue to contribute. It was a long turn job of about 18 years and has roughly 350k in it.

I have a Roth IRA through Betterment and was considering rolling it over there, although as this is almost my entire nest egg. The eggs in one basket thing does scare me a bit.

My new jobís options are slim as there best 401k fund is a vanguard S & P index fund admiral which currently is my only fund Iím in. My yearly contributions at 12%.

I would love some advice on where to rollover that 350k. I love the idea of low cost index funds, all advice is welcome. Thanks in advance
1) What funds are in the old_401k and new_401k?
2) Rolling over old_401k to Roth has tax implications. See link below.
3) Rolling over old_401k to new_401k MAY be a good choice. One would have to know and consider all of the details of old and new. There you can contribute.

Your 401(k) is a "qualified plan" on the chart linked below. Footnotes are important.
https://www.irs.gov/pub/irs-tege/rollover_chart.pdf
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Old 01-13-2019, 08:40 AM   #9
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This is my Current job 401k funds from Transamerica IMG_6205.jpg
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Old 01-13-2019, 08:41 AM   #10
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These are my old 401k options
IMG_6204.jpg
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Old 01-13-2019, 08:44 AM   #11
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1) What funds are in the old_401k and new_401k?
2) Rolling over old_401k to Roth has tax implications. See link below.
3) Rolling over old_401k to new_401k MAY be a good choice. One would have to know and consider all of the details of old and new. There you can contribute.

Your 401(k) is a "qualified plan" on the chart linked below. Footnotes are important.
https://www.irs.gov/pub/irs-tege/rollover_chart.pdf


Thank you very much for all the info..... I post both my old and new 401k fund options
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Old 01-13-2019, 08:50 AM   #12
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What's your time horizon?

If the money will stay parked in there for 10 years or more, I think putting most or all of it into the S&P 500 isn't a bad option. The admiral funds are very low fee. Maybe put a small percentage in an international fund if you want.
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Old 01-13-2019, 09:05 AM   #13
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I think you are asking about a way to contribute to the old 401(k). There is no way to do that. You may be able to contribute to an IRA, but that would be independent of the rollover of your 401(k), i.e. whether or not it is rolled over.

You have some good options in your old 401(k), as long as the fees to maintain it there are very low. There is only one decent option in your new plan, and I bet there are administrative fees associated with the plan.

Any rollover to a Roth would require you to pay income tax on the amount rolled over.

Some research on the differences between the various types of retirement accounts and their mechanics would help you, now and in the future.
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Old 01-13-2019, 09:13 AM   #14
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What's your time horizon?

If the money will stay parked in there for 10 years or more, I think putting most or all of it into the S&P 500 isn't a bad option. The admiral funds are very low fee. Maybe put a small percentage in an international fund if you want.


Iíll be 45 this year.....prob another 15 years at least to grow
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Old 01-13-2019, 09:24 AM   #15
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I think you are asking about a way to contribute to the old 401(k). There is no way to do that. You may be able to contribute to an IRA, but that would be independent of the rollover of your 401(k), i.e. whether or not it is rolled over.

You have some good options in your old 401(k), as long as the fees to maintain it there are very low. There is only one decent option in your new plan, and I bet there are administrative fees associated with the plan.

Any rollover to a Roth would require you to pay income tax on the amount rolled over.

Some research on the differences between the various types of retirement accounts and their mechanics would help you, now and in the future.


Thanks the fees for my old plan are around $190 per quarter
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Old 01-13-2019, 09:57 AM   #16
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Thanks the fees for my old plan are around $190 per quarter
That's a lot in fees. I would strongly consider rolling it over.

I started a small Betterment account as an experiment. Unimpressed. Lots of hand waving and lousy performance. I can do better without the fee they charge. Plus they make it very difficult for you to get disentangled from them. Lots of unhappy customers out there that tried to close their accounts and go elsewhere.

In your shoes, I would keep things simple. Vanguard or Fidelity and low cost index funds. Then do some reading about investing. Lots of good references in various threads here or look at the Bogleheads website.
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Old 01-13-2019, 10:08 AM   #17
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Thanks the fees for my old plan are around $190 per quarter
If you rollover the old_401K to Vanguard IRA, you can save the fees for next 10-15 year and longer.
You can also pick up .25 savings in the e/r of the AF Target Fund.

For reference, my 401(k), with similar balance, had about $6 of admin fees in 2018. So I am in no hurry to leave.
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Old 01-13-2019, 10:18 AM   #18
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If you rollover the old_401K to Vanguard IRA, you can save the fees for next 10-15 year and longer.
You can also pick up .25 savings in the e/r of the AF Target Fund.

For reference, my 401(k), with similar balance, had about $6 of admin fees in 2018. So I am in no hurry to leave.


Wow thatís amazing almost no fee there. Thanks for the info...Iíd really like to get things all in one place
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Old 01-13-2019, 10:20 AM   #19
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That's a lot in fees. I would strongly consider rolling it over.



I started a small Betterment account as an experiment. Unimpressed. Lots of hand waving and lousy performance. I can do better without the fee they charge. Plus they make it very difficult for you to get disentangled from them. Lots of unhappy customers out there that tried to close their accounts and go elsewhere.



In your shoes, I would keep things simple. Vanguard or Fidelity and low cost index funds. Then do some reading about investing. Lots of good references in various threads here or look at the Bogleheads website.


Appreciate the info...I like your idea for sure. This seems to be way to go. Thanks again
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Old 01-13-2019, 11:37 AM   #20
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OP - Rolling over that much means you can be paid for it. You could get $900 as a bonus, and free trades, zero fees

https://www.merrilledge.com/offers/900offer
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