401k Transfer?

Wish
iuTl23

Go to company page Wish

iuTl23
Nov 1, 2019 10 Comments

I had a 401k at FB and have the choice to keep it where it is or roll it over to my new 401k with no company contribution. Looking for advice on to keep where it is or move it? i called Fidelity and they didnt really help answer that.

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TOP 10 Comments
  • New
    PBGT14

    New

    PBGT14
    When changing jobs, I always "rollover" my existing 401k into a "Rollover/Traditiinal IRA" in a well known financial institution. That way I can invest in whatever I want (within the guidelines of IRA rules, of course). Although 401k's generally have a good variety of choices to invest in, they are always limited. A Rollover IRA at any of the top 10 investment firms will have all the investment choices of any 401k, plus it will have many many more vehichles you can also put your money into.
    Remember, however, that a Rollover IRA is managed by you and you alone (unless you have a financial advisor), so dont invest in anything crazy, this is supposed to be your nest egg.
    I am fairly young and dont want to spend a bunch of time investing, so I just throw, everything into a S&P 500 equivalent. I could do this within a 401k, but in an IRA, i at least have more choices and if I change my mind and want to be more active, I can do so.
    Nov 1, 2019 3
    • Google
      kanyezus

      Go to company page Google

      kanyezus
      Schwab, Vanguard or Fidelity. Don’t fuck with any of the smaller players, not worth your time.
      Nov 1, 2019
    • New
      PBGT14

      New

      PBGT14
      I personally use Fidelity, but only because that was the institution where my first 401k was managed. And when I changed jobs, it was a simple click of a button to rollover the 401k into a traditional IRA and stay at Fidelity. They make it easy so they can keep your money on their institution.
      However, all of the big ones are the same, and all have all the same types of investments. The only difference being trading fees, access to advisors and research.
      Fidelity, Wells, Merrill (BoA), Etrade, Schwab, Ameritrade, any would do fine. No matter who you ask, you will hear horror stories about each one individually, but if you just have a simple IRA from a rollover, and you are investing in the typical stuff like indexes and mututal funds, any institution would do. If you want to do more complicated types of investments like options, llp's, etc then the choice if institution will matter as the fees may be significantly different, or they may not offer everything you want.
      Also, be aware that not all investments are allowed in a IRA. Investments where there is potentially an unlimited loss like shorting a stock, or uncovered/naked options are not allowed, amongst other thing.
      Nov 1, 2019
  • Keep in mind that if you ever go bankrupt. A 401K is considered a pension plan. An IRA is considered a savings vehicle. The Bankruptcy Court will take your IRA money, but not your 401K.
    Nov 1, 2019 0
  • I like having everything in one place so I rolled over my previous employers 401k to MSFT , you could also roll it into a traditional IRA but then you’d have to start managing it
    Nov 1, 2019 0
  • Wayfair
    QBOV25

    Go to company page Wayfair

    QBOV25
    Probably depends on if you also want to have another account to manage. I am moving my 401k to my new employer
    Nov 1, 2019 0
  • Intel
    Riso4ever

    Go to company page Intel

    Riso4ever
    No reason to unless the available funds and expenses aren’t as good as the current plan.
    Nov 1, 2019 0