Before Resignation : 401k

Aug 28, 2021 20 Comments

Hello ,

What should i do with my 401k at msft if i am going to resign and join a new company (small company that does not have a 401k match) ?
Should i just leave the 401k there with the brokerage account i had with msft?

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TOP 20 Comments
  • Facebook
    reddish1

    Go to company page Facebook

    PRE
    Microsoft
    reddish1
    Leave it in the same account, rolling over to IRA will block you from doing back door roth in future. Like others said above commissions/fees are very low in MSFT fidelity account and they do not change once you leave.
    Aug 28, 2021 5
  • Leave it w/ fidelity. The fees on the funds in their program are very low.
    Aug 28, 2021 3
    • Invest accounts individual means your regular trading account. When u put money for espp every purchase period the company buys the stock and puts it in your individual account for u to do whatever u want with it. You could also put in some of your own money and trade there as you please. Think of that account as your Robinhood account (only better)
      Aug 28, 2021
    • understood, thank u rJUK38
      Aug 29, 2021
  • I thought about this. I may leave it in msft since the investment options I chose are only available throu them. It's quite nice. And I read somewhere that they don't charge fees after you leave. I will have to double check.
    Aug 28, 2021 0
  • Cruise
    zqzxa31

    Go to company page Cruise

    zqzxa31
    Leave in the 401k. It's treated differently from the legal perspective, like can't be forfeited in settlements with prejudice. IRA can have judgements rendered against them (state dependent).
    Aug 28, 2021 2
    • Financial Service Company
      xCSv28

      Financial Service Company

      xCSv28
      Agreed. 401Ks are also protected in bankruptcy, and other rare unfortunate circumstances, etc.
      Aug 28, 2021
    • NVIDIA
      lotun

      Go to company page NVIDIA

      lotun
      Right on. ERISA protection. Also if you convert to traditional pretax IRA and want to also do after tax IRA to Roth backdoor rollover, you'll have major tax headache with prorating pretax and after tax portions.
      Aug 28, 2021
  • MAke sure to contribute enough to max msft match before leaving
    Aug 28, 2021 1
    • Amazon
      NhQA08xd

      Go to company page Amazon

      NhQA08xd
      Since he doesn’t have much match at newco, this makes sense. But otherwise you might want to save for a better match at the new company knowing you’ll max at 19k per year and trying to max match
      Aug 28, 2021