What to do with your 401K contributions when you leave the company?

Jul 12, 2018 28 Comments

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! ☺️

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TOP 28 Comments
  • Amazon
    beleeb

    Go to company page Amazon

    beleeb
    Move to Schwab retirement account. Manage myself.
    Jul 12, 2018 6
    • Amazon
      beleeb

      Go to company page Amazon

      beleeb
      Nah I convert to it to schwab. I have 4 different company 401ks on the same account. I think it goes in as an IRA most of the time depending on contributions.
      Jul 12, 2018
    • Microsoft / Eng
      Harmar

      Go to company page Microsoft Eng

      Harmar
      If you have >$5000 you can keep the account. You can also roll it out into an IRA or new 401k.

      Microsoft has some *very* low cost funds, which is a good argument for keeping it where it is, unless you have specific investing needs that you can't meet in-plan.
      Jul 12, 2018
  • Qubole
    agHA04

    Go to company page Qubole

    agHA04
    Rollover into new companies 401k, 401k assets are protected from lawsuits and iras are not
    Jul 12, 2018 0
  • Amgen / Eng
    Cldseeking

    Go to company page Amgen Eng

    Cldseeking
    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.
    Jul 12, 2018 0
  • Go hash out your options with a good financial advisor
    Jul 12, 2018 6
  • Rollover to an IRA. You'll have more investment options and they are generally cheaper.
    Jul 12, 2018 5
    • Google
      X.team

      Go to company page Google

      X.team
      That’s just ‘normal’ backdoor. If you want to avoid getting taxed on the pretax basis then roll it into your new company’s 401k. Have never seen it that you can continue in your old company’s 401k, only seen the case that they force a distribution (that you roll over somewhere else).
      Jul 12, 2018
    • If you have a 401k that allows in-plan conversions it doesn't pose any problems at all. And you can still do a back door roth with a rollover IRA, you just have to deal with the pro rata rule. Having a diversified low cost portfolio outweighs that tax downside IMO.
      Jul 13, 2018