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I would think it's pretty common, and there's nothing wrong with this except it's less convenient than having everything in one account.
There is no rush to transfer the old account into your new company's plan, as you can do it at any time. But once the money is with your new company's plan you cannot move it out until you leave that employer. So take your time and be really sure you like the investment selections in the new plan.
i would never leave any 401k with an ex employer ... i had one fail financially and the company closed the 401k and stopped paying the custodian ... the investments were all liquidated by the custodian and put in a holding account at zero interest and turned over to the court .
we had no access to the money and no investments ... it took about 8 months before the court appointed a custodian to disperse the funds .
it is bad enough keeping on eye on the companies health you work for when you are there ..it is near impossible when you are not.
these are things you learn about after they happen to you .
10% plus a match is what most people do, if you want to be like most people. Or you can just max it out, the more you have taken out of your paycheck the better your tax situation and the less likely you'll spend it.
10% plus match is not what most people do, it’s lower than that
so pension is another questions i have at my last company i did have a pension. I can still see my account and i have 25k in there. I called and spoke with someone and they said i could leave it there or move to a Roth IRA i believe it was. Not sure what to do with it.
The option is most likely to move it to an IRA not a Roth.
Welp if MIT goes out of business we'll all hear about it.
also the account is with fidelity, I dont see them going out of business either.
i don't worry about fidelity
i would worry about these companies people leave their 401k's with but have no idea what is involved with them going under or being taken over after a financial hardship
i would worry about these companies people leave their 401k's with but have no idea what is involved with them going under or being taken over after a financial hardship
I know a few people sued MIT over their 401k accounts because they didnt think MIT was helpful with helping them with their 401ks:
you can't roll over a traditional 401k to a roth ...you can only roll it to a traditional ira ... then you can do a conversion once in your ira
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