Author Topic: 401k rollover...how to do it?  (Read 3071 times)

Kaikou

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401k rollover...how to do it?
« on: September 24, 2015, 06:03:58 PM »
Can someone tell me the step by steps of how to rollover my 401k from a previous employer?

The account is currently with Fidelity. Do I have to set up a Vanguard or what? Do I have to know what stocks I want to put it in to?

What will happen to my account at Fidelity?

Literally a layman's guide, I've never done this before and I really don't know what to do.

Telecaster

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Re: 401k rollover...how to do it?
« Reply #1 on: September 24, 2015, 06:13:21 PM »
Easiest way:  Just call Fidelity and tell them you want to roll it over.  I'm not sure if you can do it entirely over the phone, you might have to fill out a form and send it back.  Or take it into a Fidelity office. 


Easy way:  Call Vanguard and tell them the same thing.   

Kaikou

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Re: 401k rollover...how to do it?
« Reply #2 on: September 24, 2015, 07:26:50 PM »
ok so why do people take about Vanguard so much around here? Is it better than fidelity?

When I roll it over, what account is it in? Roth IRA?

MDM

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Re: 401k rollover...how to do it?
« Reply #3 on: September 24, 2015, 09:47:38 PM »
ok so why do people take about Vanguard so much around here? Is it better than fidelity?
The average Vanguard fund will cost you less than the average Fidelity fund, so from that perspective Vanguard is better. 
You can find Fidelity funds (their Spartan series) that are comparable to Vanguard's lowest cost, so from that perspective they are similar.
If you have >$250K invested with Fidelity you might (not sure if your 401k employer also had to use Fidelity for HSAs) be able to have a no-fee HSA at Fidelity, so from that perspective Fidelity would be better.

Quote
When I roll it over, what account is it in? Roth IRA?
That is up to you, but if you roll a pre-tax 401k over to a Roth IRA you pay tax on the entire amount in the year of the rollover.

Telecaster's advice is good.  Fidelity will likely be easier for you because the funds are already there.  That said, rolling over to Vanguard will still be easy: https://investor.vanguard.com/401k-rollover/.

Kaikou

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Re: 401k rollover...how to do it?
« Reply #4 on: September 24, 2015, 11:23:55 PM »
OK thanks. I'm going to read that link because I still have no idea what you guys are saying.

MDM

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Re: 401k rollover...how to do it?
« Reply #5 on: September 24, 2015, 11:44:08 PM »
And for the Fidelity view: https://www.fidelity.com/retirement-planning/learn-about-iras/401k-rollover-options

With many people using phones with difficult typing setups, posts are often interpreted rather than taken literally.  E.g., in the OP there is "Do I have to set up a Vanguard or what?"  I read that as "Do I have to set up a[n account at] Vanguard or what?"  If you really meant "a Vanguard" - treating a Vanguard as a thing instead of a company - my apologies for misreading your post.

Kaikou

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Re: 401k rollover...how to do it?
« Reply #6 on: September 25, 2015, 01:01:46 AM »
I just said Vanguard because that's what everyone mentions. I asked why and someone said cause their funds are cheap

 

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