Retired and still holding onto 401k because....

[whatnot]

Quote:

Originally Posted by Marc As my 403(b) was at Fidelity, I, too, thought of leaving it in the 403(b). I decided to move it over about two years. First, Fidelity gave me pretty large bonuses for switching over $1M each time. Second, the index funds fee structure for regular investors came pretty close to matching my 403(b). Finally, my company ended up charging a maintenance fee for the fidelity account (actually I had mad my final transfer just before this fee was initiated). If you are at one of the big brokerages, make sure you get rewarded for setting up your rollover IRA. Marc

My DH retired 5 years ago and has retained his funds in employer Fidelity 401k. We met with Fidelity rep after he retired and they suggested we move funds to Ira because of more investment options. But we have low cost Fidelity index funds and bond funds so didn’t make the move because of 401k protections. We did move from the bond index fund to the Fixed Income option which was paying 1.9%, which was good at the time.
But now that CD rates are higher, thinking now is the time to rollover 401k to IRA in order to invest in CD’s for fixed portion of portfolio.

That being said, how do we ask for a Bonuses for move to IRA.?
Balance is $2 mill.

Thanks for any advice.

[Out-to-Lunch]

Quote:

Originally Posted by pb4uski You can always do a total 100% withdawal from the 401k, which I am guessing does not require Medalion signature, into your bank account and and then do a rollover contribution from the bank account to a traditional IRA and it woudl not be a taxable event as long as it is done within 60 dyas and you haven't had another rollover contribtion within the last 12 months. The hitch is that taxes will likely be withheld on the withdrawal and you would need to make up the taxes withheld from other funds and then wait to get a refund of the taxes withheld.

+1, but with a small correction. When coming from a 401(k), you do not face the one-per-12-mos. limit on indirect rollovers. That only applies to IRA-to-IRA indirect rollovers.

[pb4uski]

Quote:

Originally Posted by Out-to-Lunch +1, but with a small correction. When coming from a 401(k), you do not face the one-per-12-mos. limit on indirect rollovers. That only applies to IRA-to-IRA indirect rollovers.

Interesting. Didn't know that. I stand corrected.

Too bad that there isn't a way to elect out of federal income tax withholding in such situations.

[Romer]

before I retired I could access funds, transfer funds, withdraw funds with a few clicks

Now I can't. They said they needed to send me forms to have my WIFE and I notarize even though before it was just me.

I decided to wait and maybe that was their strategy (probably not)

Thinking about moving forward now that TD Ameritrade transfer to Schwab is complete

[Out-to-Lunch]

Quote:

Originally Posted by pb4uski Interesting. Didn't know that. I stand corrected.

And see post #18.

https://www.early-retirement.org/for...ml#post2982972

[pdxgal]

Quote:

Originally Posted by Winemaker I still have mine after almost nine years of retirement for the same reasons. Also, my Vanguard funds are charged with the Institutional Rate.

+1. Thanks to OP for posing the question, I've often wondered about this myself, 2 years into ER.

[pdxgal]

Quote:

Originally Posted by pb4uski ...Also, a recent thread suggested that a rollover IRA from a 401k continues to have ERISA protections as long as you don't taint it with other IRA money or contributions. ...

My understanding is that the protection is based on recent case law in California (https://matsorensen.com/self-directe...or-protection/). And case law can be overturned or interpreted otherwise, as we've seen in recent SCOTUS rulings. So for now I prefer the ERISA protection.

[Alex The Great]

Quote:

Originally Posted by pdxgal My understanding is that the protection is based on recent case law in California (https://matsorensen.com/self-directe...or-protection/). And case law can be overturned or interpreted otherwise, as we've seen in recent SCOTUS rulings. So for now I prefer the ERISA protection.

But opposite is not protected under ERISA, correct? I mean the funds not contributed by employer but rolled over from IRA to 401K?

[whatnot]

Quote:

Originally Posted by Marc As my 403(b) was at Fidelity, I, too, thought of leaving it in the 403(b). I decided to move it over about two years. First, Fidelity gave me pretty large bonuses for switching over $1M each time. Second, the index funds fee structure for regular investors came pretty close to matching my 403(b). Finally, my company ended up charging a maintenance fee for the fidelity account (actually I had mad my final transfer just before this fee was initiated). If you are at one of the big brokerages, make sure you get rewarded for setting up your rollover IRA. Marc

How did you get the bonuses? DH has 2 mill in Fidelity 401k. We are now considering moving it to Ira in order to access CD’s.
What would be considered an appropriate Bonus?

Thank you in advance for any advice.

[BruinBones]

I am holding on to my TSP for the relatively low (no longer the lowest) expenses ratios, the G-fund (currently at a Stable-Value-Fund-like rate of 4.25%), and to use for rebalancing my portfolio. I will probably transfer it all into my IRA when it is time to withdraw.

[DangerDad]

My 401k and Keogh are at Schwab. Taxable brokerage at Vanguard. I’ve considered rolling over from Schwab to Vanguard in order to streamline—I value simplicity. On the other hand, I like the Schwab funds and those assets are happy and cozy over there. At this point I’ve decided to leave well enough alone.

[pb4uski]

Why not do the opposite?... roll your taxable brokerage from Vanguard to Schwab. Everything is under one roof that you are comfortable with. Easy peasy.

[Marc]

Quote:

Originally Posted by whatnot How did you get the bonuses? DH has 2 mill in Fidelity 401k. We are now considering moving it to Ira in order to access CD’s. What would be considered an appropriate Bonus? Thank you in advance for any advice.

I think I heard here on ER and asked my Fidelity rep. I was also able to find on Fidelity website. I would start with your rep. If you have $2M at Fidelity even if all at Net-Benefits I would make sure to get rep.

Marc

[Alex The Great]

Quote:

Originally Posted by DangerDad My 401k and Keogh are at Schwab. Taxable brokerage at Vanguard. I’ve considered rolling over from Schwab to Vanguard in order to streamline—I value simplicity. On the other hand, I like the Schwab funds and those assets are happy and cozy over there. At this point I’ve decided to leave well enough alone.

Don't do that. Seriously. Vanguard's customer service is virtually non-existent and their interface is terrible. They still have some great funds but I would avoid them at any cost.
My favorite is Fidelity but Schwab is OK too.

[Scout]

Quote:

Originally Posted by Alex The Great Don't do that. Seriously. Vanguard's customer service is virtually non-existent and their interface is terrible. They still have some great funds but I would avoid them at any cost. My favorite is Fidelity but Schwab is OK too.

Second that

[pb4uski]

Third that. I moved everything from Vanguard to Schwab about a year ago because of the slow decay and rot in Vanguard's customer service. At Schwab, I have two people who I can call and the actually answer the phone or if they don't and I leave a voicemail they actually call me back. Ditto with email.

[DangerDad]

I’ve been with Vanguard for a long time so I must admit there’s a comfort factor based on familiarity. Regarding service, I haven’t had significant problems—but this could be related to my rare need for service. Almost everything can be done via the app. Having said all that, I’ll take a look at Schwab—I wonder if they have tax-managed funds..?

[pb4uski]

I'm sure they do, or I suspect you can even buy any Vanguard tax managed funds that you are comfortable with.

[whatnot]

Thank you Marc.
I made an appointment with an advisor.
I just hope they don’t try and make a big push for annuities. That is what the last advisor did. I explained that DH has a pension and SS, and I will have SS also when I decide to start benefits.

[NW-Bound]

Quote:

Originally Posted by monte1022 I'm retired and still holding my 401k because of two main reasons. 1. ERISA protections 2. Stable value fund

My wife rolled out most of her 401k to an IRA, but kept the stable value fund portion, which was 1/3 of her account.

For protection, I have the umbrella insurance, and hope that's adequate.