401k rollover

Oct 2, 2020 9 Comments

Hi blind,
I just started new job and going to sign up for 401k with Fidelity.
I have another 401k account with previous employer, also Fidelity, where I worked for a while, so it's about 80k there. I am in mid-30 and don't have any other retirement money aside and don't plan on using these funds for any personal reasons, planning to contribute around 15-18k every year + employer's match.
What should I do, and where to rollover, IRA or just merge with new 401k account funds? If rollover to IRA, what's the best options to invest there? #investments

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TOP 9 Comments
  • Rollover to traditional ira or merge 401k, not a big difference. Don’t do Roth rollover.
    Oct 2, 2020 1
    • New
      zKye70

      New

      zKye70
      There is a difference between rollover or merge to 401k. Roth rollover can be useful too in certain cases but not in most cases.

      But if you already have a traditional or rollover IRA, you do not want to do a Roth rollover from 401K or backdoor Roth IRA.
      Oct 10, 2020
  • Google
    bellapoarc

    Go to company page Google

    bellapoarc
    Since both of your plans are with the same provider, you could simply merge them into one account.
    Oct 2, 2020 2
  • Zoox
    noox

    Go to company page Zoox

    noox
    Merging into the new 401k would be great (as long as it doesn't suck for some reason, e.g. high fees or bad investment selection). Turning it into a traditional IRA is okay as well, but I believe it would restrict you from making so called "mega backdoor" roth contributions in the future because you'd pay taxes under the pro rata rule
    Oct 2, 2020 0
  • Varian Medical
    whbdhib

    Go to company page Varian Medical

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    whbdhib
    You can also have 2 plans running in parallel in Fidelity
    Oct 2, 2020 1
  • New
    zKye70

    New

    zKye70
    Dude..you just joined FB, right? Congrats! So first can you share the FB offer details TC and at what level & yoe?

    The first rule is never to leave money with a former employer! Now I will tell you the next best option with the reason after you share your FB offer. ;)
    Oct 10, 2020 0