Rolling over 401k into Vanguard IRA Roth - Questions

[reed303]

Originally Posted by SaraR.

Thanks alot. Does it matter when I roll over the 401k? The fees are very high on the 401k.

When I roll it over, I am still invested in the same stocks right? IF not, I have to re-buy them at a more expensive rate as the S&P has only increased in value?

I have S&P and one other one called inflation protected something. Only about $1500 is in the inflation protected. I'll send 50% to a traditional IRA and 50% to the ROTH IRA.

What fees ? Is your employer charging fees to process a rollover, or what ?

Yes, you need to "re-buy" whatever stocks you want the same in the new account. But you "sell" at or near the same price you buy, so its usually close to a wash. As said, most IRA accounts, any "new" money first goes int a "core" account, then is spread out to whatever stocks, mutual funds etc you want.

Is there a Schwab or Fidelity local office anywhere near you ? Go and meet with an advisor. No charge.

[SaraR.]

Yes it's a smaller company so the fees are very high. It's thru Paychex so lots of hidden fees
The balance shown isn't really the real balance I understand
I don't know if there is a fee for a rollover, thanks for that. I'll check

Considering keeping it parked where it's at forever, or maybe until I get a new job and can
roll it into the new 401k.

[SaraR.]

Originally Posted by ChessieMom

You will have to specify where the funds should go. You might be able to direct the funds initially into specific investments but the two times that I have done this, it was up to me to select and purchase funds after the money was rolled over into a “core” holding account. The investment choices are often much greater than the employer plan.

that makes sense, thanks

[ChessieMom]

Originally Posted by SaraR.

Yes it's a smaller company so the fees are very high. It's thru Paychex so lots of hidden fees
The balance shown isn't really the real balance I understand
I don't know if there is a fee for a rollover, thanks for that. I'll check

Considering keeping it parked where it's at forever, or maybe until I get a new job and can
roll it into the new 401k.

What do mean “not the real balance”??

[SaraR.]

Originally Posted by ChessieMom

What do mean “not the real balance”??

I understand the balance shown is not the real balance. Until I roll it over, won't know for sure