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Learning, Sharing, and Teaching => Investor Alley => Topic started by: MoneyGoal on March 18, 2019, 11:41:53 AM

Title: Old 401k rebalance
Post by: MoneyGoal on March 18, 2019, 11:41:53 AM

Hi,

I have an old existing 401k.
I want to reallocate existing funds into one fund.
Can I do this without any tax implication?
Based on what I read online, seems like it is fine, but I am worried.

Thanks.

Title: Re: Old 401k rebalance
Post by: RWD on March 18, 2019, 11:46:06 AM

Yes, you can buy/sell within a 401k (or other tax sheltered accounts) without any tax consequences.

Title: Re: Old 401k rebalance
Post by: MoneyGoal on March 18, 2019, 12:29:38 PM

Thanks!

Title: Re: Old 401k rebalance
Post by: TomTX on March 19, 2019, 06:36:46 AM

Why do you want to keep the old 401k? Often 401k fees/expenses are high, especially old plans.

Why not roll it into an IRA or your current 401k?

Title: Re: Old 401k rebalance
Post by: PDXTabs on March 19, 2019, 09:07:40 AM

Quote from: TomTX on March 19, 2019, 06:36:46 AM

Often 401k fees/expenses are high, especially old plans.

Is there some law of nature that old 401(k)s have higher fees? My old Fidelity 401k is great. I'm very careful not to transfer into my new Transamerica 401k which is horrible. Also, by not transferring into an IRA I allow myself to contribute to a back door Roth IRA.