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My old job used Fidelity. New one is TransAmerica. Does it matter whether or not I leave my old 401k funds with Fidelity? Other than for the convenience in having the funds in one place are there other reasons I should move my 401k funds from old job over to TransAmerica?
My old job used Fidelity. New one is TransAmerica. Does it matter whether or not I leave my old 401k funds with Fidelity? Other than for the convenience in having the funds in one place are there other reasons I should move my 401k funds from old job over to TransAmerica?
It doesn't matter where you leave it as long as the fund is still being supported. I've been with two companies who have closed down my 401k which required me to move it over. Just make sure you pay attention and move it when it's about to close.
Your preference should be whatever is performing the best. I kept my previous employers 401k in place because it was performing better than my current companies offering.
we got caught in a company take over . the company i worked for had financial difficulty that was not apparent .. by the time it was they closed the 401k , stopped paying the custodian and the money was locked .
it was liquidated and turned over to the court who took almost a year to get a new custodian in place so the fund could be unlocked . i would never ever leave money again with a former company
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Other item to consider is whether a loan (not arguing the merits of whether to take one or not) at the new company would ever be needed. Switching the funds over allows your loan amount (if offered) to be closer to the $50K upper limit.
Last edited by korrosive; 10-03-2019 at 01:25 PM..
Reason: $50K is law not an option for the plan administrator
I would be wary leaving 401k funds since there really aren't any advantages and they make it really easy to roll things over. First they will still take administrative fees if you leave it in the old place. Second you never know what changes will take place and you won't hear about it until you try to access your funds. Roll it to an IRA or your existing 401k depending on your situation.
I would be wary leaving 401k funds since there really aren't any advantages and they make it really easy to roll things over. First they will still take administrative fees if you leave it in the old place. Second you never know what changes will take place and you won't hear about it until you try to access your funds. Roll it to an IRA or your existing 401k depending on your situation.
Rolling over to a Fidelity IRA may be a good option. Fidelity has a great product offering and 0 IRA fees.
One reason you may want to wait is if you are not fully vested in the 401K employer match. Some (many?) companies have a 3-5 year vesting period. This only applies to the employer match, your (employee) contributions are always 100% vested immediately.
Rolling over to a Fidelity IRA may be a good option. Fidelity has a great product offering and 0 IRA fees.
One reason you may want to wait is if you are not fully vested in the 401K employer match. Some (many?) companies have a 3-5 year vesting period. This only applies to the employer match, your (employee) contributions are always 100% vested immediately.
I thought the vesting period is the amount of time you have to work there to keep the match. If he's left already, then the clock on vesting stops.
I agree, rolling it into your own IRA may be a good choice. If you already have a Fidelity account, it'd be easy enough to roll it there.
My old company got acquired by a much larger company that took the plan to their account. I had left before the acquisition to a new company. One day, I logged in and saw my accounts had all been zero for like 6 months.That was pretty scary and shocking. It’s not fun when one of the larger assets I have just disappeared. I called and got it sorted out, but it wasn’t a great time.
I never left funds in my old 401(k) plans. I always rolled it over to my IRA so I could have complete control over it. You don't know who your 401(k) administrator will be two years from now or what funds they'll offer you. By having complete control of some of your funds, you can always manage your AA to include low fee investments.
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