Roll over old 401k (funds, accounts, buy, companies)

[shaner23]

I have a 401k from my previous employer that I have left untouched since I left the job a year ago. I have about $12.5k in the plan, and like the funds that I'm vested in. It is managed by Merrill Lynch. I also have a Fidelity account which I had opened a Roth IRA with, and my current employer also uses them to service my new 401k. I also have a brokerage account with RSUs managed through Fidelity.

My question is, should I rollover my old 401k to a Fidelity IRA? As I said, I like the funds in my Merrill Lynch 401k, and have seen decent growth over the past year, even without contributions. It seems the only benefit would be for ease of management of all my accounts at Fidelity.

[crescent22]

I would roll it over- why keep connections with a previous employer? At Fidelity you can trade more than just funds and you can likely find a fund similar enough to your liked ML funds.

[MrWillys]

If you have a full on Fidelity brokerage account you can buy into the same funds if you like. I'd want to separate from the old company.

[shaner23]

Originally Posted by MrWillys

If you have a full on Fidelity brokerage account you can buy into the same funds if you like. I'd want to separate from the old company.

But I would lose the tax advantaged growth, right?

[MrWillys]

No, you can only rollover into a traditional IRA, and not a Roth. You may have to open a new account if you don't have a traditional already.

[shaner23]

Originally Posted by MrWillys

No, you can only rollover into a traditional IRA, and not a Roth. You may have to open a new account if you don't have a traditional already.

I figured I would have to open a new IRA. I have a Roth IRA, and it seems to be a "full on brokerage account" as you said. I don't really know what you mean by that. If I roll over to a new IRA, would I be able to purchase whatever I want?

[mathjak107]

the only reason you may want to keep a 401k at an ex employer is if you are going to do some back door roths.

you don't run into the rules that are involved doing conversions as when you mix deductable and non deductable ira money.

other then back door roths there are many good reasons for getting the money under your own control and out of that 401k..

[MrWillys]

Someone correct me if I'm wrong, but you can buy anything listed on the NYSE. So, yes

[mathjak107]

you can buy anything listed anywhere. all you need is a ira brokerage account.

[lookingaroundabit]

I would roll it to Fidelity. Can't see an advantage to staying w/an arrangment through a previous employer and having retirement funds with two companies versus one, when you are already with Fidelity...especially given the relatively small dollar amount. Over time, it is easier to track and manage your retirement money in one place.