Moving 401k

[Speedwagon]

I'm wondering if there is a good or bad time to move a 401k. I left a company in October, and want to move my funds out of the 401k. Just not sure if the market up/down will change when to move anything?

Seems like it would be a lateral move, if I move to a similar fund in the IRA, and there would be a net 0 outcome. Is this correct?

Second question: Should I move the 401k to the TSP(government thrift savings plan, low fees [0.032%], but more limited options), or setup a new IRA?

[plog]

Yes, move it to an IRA.

1.  Move it exaclty at February 3, 2019 11:23 eastern time.  Ask a market timing question, get an appropriate market timing answer.
--You might be out of the market for up to 3 business days.  This is retirement money.  Do you think in 2039 when you use this money you will kick yourself for choosing the wrong 3 days to be out of the market 2 decades prior?

2.  Set up a new IRA.
--Contact Vanguard/Fidelity and tell them your situation.  They will make everything painless.  Then afterward you control your money, not some administrator of the TSP.  Keep as few layers between you and your money as possible.

[ysette9]

Wait. Before you move to an IRA, check with your new plan to see if you can roll it into that plan.

I switched jobs last year and was able to move my old 401k into my new 401k. The benefit of that is that allows me to keep my traditional IRA balance at $0 which let’s me do a backdoor Roth IRA contribution each head without running into the pro rate IRS rule.

This might not apply to you at all, but it is worth asking before you make a move.

[COEE]

Wait. Before you move to an IRA, check with your new plan to see if you can roll it into that plan.

I switched jobs last year and was able to move my old 401k into my new 401k. The benefit of that is that allows me to keep my traditional IRA balance at $0 which let’s me do a backdoor Roth IRA contribution each head without running into the pro rate IRS rule.

This might not apply to you at all, but it is worth asking before you make a move.

Yes - if you have any suspicion that you will need to do a backdoor roth in the future, it's better to have your funds in your TSP so you don't get hit with additional tax burden.  I was in a similar situation last year.  After my old company laid me off I moved my money to a tIRA.  Fortunately for me, my new company allowed a IRA to 401k rollover.  Phew!

[jacoavluha]

I would move it to the TSP. It’s an excellent plan.

You could investigate your state specific asset protection benefits with regards to funds in an IRA vs the TSP if that matters to you

[Speedwagon]

I appreciate the feedback, thanks.