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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comments
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.
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.