Help with Old 401k rollover?

[SSMRI74]

Hello, just wanted to get some advice on my current situation.
I’ve got a past 401k that I’d 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 job’s options are slim as there best 401k fund is a vanguard S & P index fund admiral which currently is my only fund I’m 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

 

[gwraigty]

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.

 

[Dtail]

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.

 

[SSMRI74]

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 I’ll definitely be looking into those firms

 

[SSMRI74]

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 don’t believe they offer o e of those stable funds. It’s with American funds and currently 100% allocated in one of their target funds

 

[gwraigty]

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.

 

[MRG]

Hello, just wanted to get some advice on my current situation.
I’ve got a past 401k that I’d 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 job’s options are slim as there best 401k fund is a vanguard S & P index fund admiral which currently is my only fund I’m 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.

 

[target2019]

Hello, just wanted to get some advice on my current situation.
I’ve got a past 401k that I’d 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 job’s options are slim as there best 401k fund is a vanguard S & P index fund admiral which currently is my only fund I’m 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

 

[SSMRI74]

This is my Current job 401k funds from Transamerica

 

[SSMRI74]

These are my old 401k options

 

[SSMRI74]

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

 

[mpeirce]

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.

 

[Another Reader]

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.

 

[SSMRI74]

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.

I’ll be 45 this year.....prob another 15 years at least to grow

 

[SSMRI74]

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

 

[Another Reader]

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.

 

[target2019]

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.

 

[SSMRI74]

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 that’s amazing almost no fee there. Thanks for the info...I’d really like to get things all in one place

 

[SSMRI74]

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

 

[Sunset]

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

 

[kaneohe]

.......................
I’ve got a past 401k that I’d like to rollover somewhere so I can continue to contribute. ............................................................

What does this mean ?