This is my first company move. I am going to leave the company, move to MSFT and my current company 401K plan is with Fidelity.What should I do with all the vested money in Fidelity? Should I let it remain in Fidelity or what options do I have and what are the advantages and disadvantages for each. Thanks in advance for who all answer without trolling! ☺️
Go hash out your options with a good financial advisor
I have a doubt. What are these companies basically Fidelity, Schwab, etc. Do they hold retirement accounts? What do people do when they switch companies multiple times? Do they let the money stay across different company account or is there a way to aggregate money into one account each time you leave a company?
Everytime I've left a company I've rolled over the 401k to the next company.
I did when I moved to MSFT, but I'll probably keep the MSFT account around in the future for the low cost funds. Size does have some advantages.
This is only smart if the new company's cost is cheaper.
If you want to do a backdoor Roth IRA, then leave in current 401k or rollover to new one. Whichever has a better plan. In your case most likely MSFT. If you don't want to do a backdoor Roth IRA, then rollover to a traditional IRA and manage the money yourself with usually more options and lower fees.
Rollover into new companies 401k, 401k assets are protected from lawsuits and iras are not
I just left mine.
Rollover to an IRA. You'll have more investment options and they are generally cheaper.
.. and will have hard time when you decide to do mega backdoor.
That doesn’t make any sense to me. You need to have after tax basis for mega backdoor. In which case you should have withdrawn it to your Roth already. And you won’t be getting more after tax contributions from MSFT. What is one of us missing?
Roll it all over into one place - Fidelity is a good place, so is Schwab. Make sure you roll it into an IRA that opens up your investment options substantially vs leaving it where it’s at with potentially limited options. I manage mine myself, but that’s going to be your call in terms of how much time you want to spend care and feeding it vs paying a percentage to someone to “manage” it, which they probably won’t really do.
Move to Schwab retirement account. Manage myself.
Could you be more detailed on what is Schwab retirement account? What are the advantages of having it there versus having it in Fidelity?
It's probably very similar, I just worked there and know the investment tool. I do love Schwab support but I expect the ivestments are the same. I have my sep with schwab and would prefer everything on one dashboard.