Switching employers, And I don't know how to manage 401k, Should I transfer it to my new employer ? Any benefits in doing so. ? How do I transfer ?
You can. Some 401k accounts allow transfer. But don’t have to. Make sure if you do transfer, you transfer funds between two 401k accounts. Otherwise you’ll be fined by IRS.
I transferred 401Ks since one account was outperforming the other by 10%/yr. In addition, I just found it easier to manager. Process of transferring depends on where both accounts are located. If they happen to be held at the same brokerage then it’s just a simple phone call. If the accounts are in different brokerage then you should probably call your current account and let them know you are planning on a roll over and ask for their process.
If you transfer +) you can get loan against transferred funds -) you can't withdraw transfer funds. Bottom line: transfer when you need it. Or if your old broker/plan is a shot.
You don’t have to transfer to your employer and can do ira rollover to E*TRADE. The advantage is that instead of a few funds in your employer plan you’ll have entire universe of tickets and investments available, it’s mind boggling
Thanks bro. Employer plans also allows "entire universe of tickets" (at least at G and F) and honestly I'd prefer to keep vanguard and fidelity as they have good sweep.
Surprisingly our own 401k allows only a few funds to invest. Your guys got it right.
you could rollover into your new employer’s 401k, but better to rollover into an IRA - you get many more options to invest than with a 401k.
Rollover into a regular IRA makes future backdoor Roth contributions (practically) impossible.
but can’t he make backdoor roth contributions into his new 401k with his new employer?
No need. Keep them separate
That depends. Usually if a 401k of an ex employer has less than X dollars, it needs to be transferred out to another account.