I need some help to figure out how best to fix my retirement account. When I started working I chose to participate in the 414h plan that was offered instead of the pension style plan. They place a couple of limits on the account to discourage you from participating in the 414h. Firstly, the account is broken into 2 separate accounts – Employee and Matching. Secondly, they mandate how much you put in it as well as how much they match.
Currently, it all looks like this:
Employee – 8.66% contribution – 50k
Matching – 5% contribution – 38k
I am trying to find out if I’m allowed to roll money over into this account, how it would be divided up in my account, and how often I would be allowed to do this. I’m thinking that if I can roll something like a Vanguard IRA into my Employee account, it would be worth it for the boost in earnings. I’m not sure if it would be worth it or not if they split it between the 2 accounts (or maybe it is if more money = more money).
Also, since my money is split between 2 pots, how should my allocation work? If I’m 80/20, should my Employee account be 100% stocks, and my Matching account be bonds for 20% of the total amount with stocks for the rest? Or should it be 80/20 in both accounts?
Thanks in advance for any help!
