Author Topic: Job Change: Rollover 401k to new 401k or into tIRA  (Read 312 times)

Slow&Steady

  • Bristles
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Job Change: Rollover 401k to new 401k or into tIRA
« on: February 08, 2018, 10:22:46 AM »
I have recently changed jobs and probably need to think about what to do with my old employer sponsored 401k, can anybody help me determine what my best long term option is?  If you want to take the time to explain why that would be awesome.  In the past I have always just rolled over everything to whatever the new plan is just so that it was easier for me to keep track of a single account but I am not sure that is my best option so should I:

Rollover to the new employer sponsored 401k (I do not know the ER at the new plan yet vs the old plan)
See if I can just leave it as is (I do not know the ER at the new plan yet vs the old plan)
Roll into a Vanguard tIRA
Any other option that I am unaware of

If helps to have a little more information, I only have the 401k account in my name and my spouse has a Roth IRA.  There are no other tax advantaged accounts, at this time.

GOFU

  • 5 O'Clock Shadow
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Re: Job Change: Rollover 401k to new 401k or into tIRA
« Reply #1 on: February 09, 2018, 07:27:05 PM »
I would check the expenses. 401k often has significantly higher expenses associated with the plan.

blinx7

  • Stubble
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Re: Job Change: Rollover 401k to new 401k or into tIRA
« Reply #2 on: February 09, 2018, 07:41:43 PM »

A Trad'l IRA may complicate your ability to fund a backdoor Roth later on.

Check the expense ratios and keep it if old one is lower or move if new one is lower. 

PDXTabs

  • Bristles
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  • Age: 34
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Re: Job Change: Rollover 401k to new 401k or into tIRA
« Reply #3 on: February 10, 2018, 06:13:37 PM »
I would look at the investment options at the new 401k before deciding. The 401k has a couple of benefits, including being completely exempt from bankruptcy, and the ability to borrow from it. Obviously rolling it into an tIRA has different advantages.

Also, depending on the 401k, you can just leave it at the former employer indefinitely.
When the alien resides with you in your land, you shall not oppress the alien. The alien who resides with you shall be to you as the citizen among you; you shall love the alien as yourself, for you were aliens in the land of Egypt. - Leviticus 19:33-4

beattie228

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Re: Job Change: Rollover 401k to new 401k or into tIRA
« Reply #4 on: February 10, 2018, 07:14:39 PM »
I'd recommend against leaving it at your old employer. Things can change and you can often be left out of the loop once you've left the group. I'd just roll it into the new 401k if it were me.