401K Investments when switching companies

Juniper
legendz

Go to company page Juniper

legendz
Apr 24 10 Comments

Hi All,
Can anyone shed light into what can be done to 401K money when switching companies? I read that 401K money needs to be transferred to a different/new IRA account, I wonder if we need to sell off investments and then transfer money to IRA and re-invest, does that sound right or is there a better way?
Previous company use Fidelity to handle 401k account where I opened brokerage link to invest in stocks. Not sure what Meta uses for 401K.

New TC: 170K
Old TC: 150K

#investment #401k

Meta
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  • New
    thlLlIN

    New

    thlLlIN
    Tldr what you need is a rollover IRA. You would start an IRA and then "roll" your old 401k into it. Your old 401k will liquidate your holdings, and then send the money to you to forward on to your IRA. Some companies may also send directly to your new IRA. I use Vanguard for my IRA but there are many good options. Once the money is transferred you are free to reinvest it as you see fit without any tax implications.

    That being said, some companies will let you keep your 401k forever, while some will auto liquidate you after some time or start charging fees. Personally I always roll my old 401k into my IRA to keep life simpler but you do not necessarily have to.
    Apr 24 0
  • You can still keep the account if you want. But best to transfer it over to a IRA account. Means you have control over what you want to invest in it.
    Apr 24 1
  • You don’t need to sell it. You can keep it and let it grow there unless your new 401k accounts adds some benefit over old one.
    Apr 24 0
  • VMware
    OJBw57

    Go to company page VMware

    OJBw57
    My previous experiences have been they sell holdings and give you money to transfer to new company.
    Apr 24 0
  • What are good IRA companies? Fidelity? Morgan Stanley? How does one judge?
    7d 3
    • Vanguard
      6d
    • New
      thlLlIN

      New

      thlLlIN
      I recommend that you judge by selection of funds available and management fees because those will directly eat into your investment regardless of profit or loss. Historically Vanguard was the easy winner, but now competition has matched their low fees and fund selection so there are more good options to choose from.
      6d