Roll over 401k or keep in Fidelity?

Facebook 💩FB 🥤
Aug 26 7 Comments

I recently started at a new company, and like FB, they also use Fidelity for 401k. It seems I have two options. I could roll my funds out of Fidelity and into my existing Schwab rollover IRA. Or I could move the FB 401k at Fidelity into the new employer 401k with Fidelity.

What are the tradeoffs? I assume it comes down to what the investment options are between each brokerage. But more simply, is there a benefit to keeping the funds with Fidelity and growing the 401k with my new employer?

Thanks

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TOP 7 Comments
  • Rollover to vanguard
    Aug 26 0
  • Netflix rAcC67
    I think it depends on your 401k. For example if you did pretax in your 401k, rolling over to an IRA can have tax implications. If it was after tax ROTH, then it’s much easier.

    Rolling over and consolidating to a single 401k is fine if you prefer the funds in the new plan. Otherwise consolidating offers no real advantages apart from convenience.

    Best to just consult with a financial advisor on this one.
    Aug 26 2
    • Amazon AWS🍌🍌
      Never heard of specific tax implications that apply to only 401k to IRA rollovers.
      Short answer, there is not. You can rollover from a pretax 401k to a rollover IRA with 0 tax implications.

      The one biggest benefit to keeping it in a 401k is creditor protections are stronger than the ones for IRAs.

      But again consult a financial advisor, preferably one you pay directly and do not get payed commissions from the investments.
      Aug 26
    • Netflix rAcC67
      You’re correct.
      Aug 26
  • Facebook 💩FB 🥤
    OP
    Thx
    Aug 26 0
  • New
    mPOT57

    New

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    Salesforce
    mPOT57more
    I’ve always rolled them into 401k of new employer. 401k is protected by more laws against civil judgements and 401k has more ability to withdraw for extenuating circumstances
    Aug 26 0
  • Cruise Automation ¡kyle
    I’m not a financial advisor or a lawyer but have heard 401k plans are protected from judicial judgements by federal law whereas IRAs are covered by state law. In California a court could order your IRA account(s) to pay for a civil case. However, I always rolled my 401Ks to IRAs for connivence.
    Aug 26 0

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