Thanks Jazz & Sam,
 Quote:
Originally Posted by jazz4cash
... I'm glad it's not as bad as it sounds (Forced Liquidation!).
|
A bit over the top, but it made you look!!!! 
So after talking to HR and Fidelity, and after much probing, the in-service Rollover IRA option doesn't seem to be permitted, but there is a never publicized option available (it doesn't even appear in the plan's literature): apparently I can open a brokerage account within my wife's 401K and invest the money as I wish (stocks, bonds, mutual funds, ETFs, ...). I still have to research the fees and trading costs associated with this option, but apparently it would give me once again access to a wide range of Fidelity funds and more. I could even do a transfer in kind from the current 401K account to the new brokerage account so that I would not have to sell anything. My wife's employer would deposit 401 contributions in a cash account and I would have to invest the money myself (so I would lose the automated DCA option).
If the brokerage route turns out to be too costly, then I could follow Samclem's advice. I don't have a 401K (not offered by employer), only a smaller IRA (our income is too high and I can't contribute to a deductible IRA anymore). But I could keep the core of our portfolio in the 401K and use my IRA for non-core funds like REITS and EM. It will make rebalancing tougher though and it will be hard to keep a fixed asset allocation because a lot of new money is flowing to the 401K while no money is being added to the IRA.
So I'm going to investigate the fee/commission structure of the brokerage account and go from there.
|