Author Topic: Profit Sharing Rollover Question  (Read 951 times)

Big Sleep

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Profit Sharing Rollover Question
« on: July 07, 2016, 11:01:23 AM »
My wife recently left her previous job of 8 years where she has a profit sharing account with roughly $25,000 in it.  She started her new position in May and doesn't get to participate in her company's traditional 401k for a full year after employment.  The profit sharing account is invested, but I have no idea what funds/stocks/bonds are included. 

My question is, should I roll over to a Traditional IRA through Vanguard right now, or let it ride for ~10 months and then rollover into her 401k plan through her current employer?

Mother Fussbudget

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Re: Profit Sharing Rollover Question
« Reply #1 on: July 07, 2016, 11:13:20 AM »
Check with HR. While you're not eligible to *contribute* to the current company 401K, ask if you're eligible to *rollover a previous 401K into your new company's 401K*.  You're probably not eligible for rollover until eligible to do the regular contribution, but you never know until you ask.  Also... this will answer the other question:  Will your current company allow you to rollover a previous 401K into your current 401K? 

If the answer is NO, it makes sense to create a rollover t-IRA now, and rollover that old-401K into an account where you have complete control over your investments.

Kapiira

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Re: Profit Sharing Rollover Question
« Reply #2 on: July 07, 2016, 11:42:15 AM »
Do you like the investment options in the 401k plan?

frugalnacho

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Re: Profit Sharing Rollover Question
« Reply #3 on: July 08, 2016, 10:51:11 AM »
My wife recently left her previous job of 8 years where she has a profit sharing account with roughly $25,000 in it.  She started her new position in May and doesn't get to participate in her company's traditional 401k for a full year after employment.  The profit sharing account is invested, but I have no idea what funds/stocks/bonds are included. 

My question is, should I roll over to a Traditional IRA through Vanguard right now, or let it ride for ~10 months and then rollover into her 401k plan through her current employer?

Go to vanguard now.   The fees in most 401k plans are higher than what you can get in a vanguard IRA. I put new money in my 401k because that's my only option, but I would never move old money into my 401k - I would put it in a vanguard IRA instead.

Big Sleep

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Re: Profit Sharing Rollover Question
« Reply #4 on: August 01, 2016, 03:15:19 PM »
Thank you all for your replies.  Just got word back from my wife's new place of employment that she 1) cannot rollover at the present time, but 2) could rollover at time of account opening (roughly May 2017). 

They seem to be dragging their feet on getting me investment options, but did say that the administrator is Transamerica.  I haven't heard much about Transamerica on here, so I think I will take my chances with roughly $5k in VBTLX (to allow for bumping to admiral shares) and then the remainder to VTSAX, with ER of 0.06% and 0.05% respectively.  I'd rather move it now, invest it and know the fees I am paying, rather than wait a year and then realize I have terrible options.