Author Topic: Please help with 401k to IRA math  (Read 1506 times)

coffeelover

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Please help with 401k to IRA math
« on: January 15, 2016, 08:25:12 PM »
Hi and thanks for reading.

I have an old 401k that I've kept with my past employer. It has a substantial balance to it, which is dwindling now due to the market. I'm trying not to worry, eck.

I can't find any info on how much my PNC 401k is costing me in fees per month, year etc.
It is still with my old employer, I don't see where I have any fees coming out either.

2 years ago I was able to come across a website that compared 401k to roth to IRA and then told you based on numbers where you were better off putting/leaving your money.
I of course can no longer find this website.

I'm hesitate to move to a Roth because this website 2 years ago stated I was better off leaving it in the 401k.

I need numbers here people, can anyone help me out? Where do I put the money, do I leave it?

seattlecyclone

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Re: Please help with 401k to IRA math
« Reply #1 on: January 16, 2016, 04:12:56 AM »
You may benefit from moving the money to a traditional IRA where you can choose any low-fee index fund you want and are not tied down to your previous employer's investment options. Whether it's a good idea to convert to Roth or not is a separate question, but this is generally best done in a low-income year or during retirement.

GrOW

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Re: Please help with 401k to IRA math
« Reply #2 on: January 16, 2016, 04:55:27 AM »
I can't find any info on how much my PNC 401k is costing me in fees per month, year etc.
It is still with my old employer, I don't see where I have any fees coming out either.

It is likely that your employer pays the fees, at least the admin fees - you still bear the individual fund management fees which you can find in the prospectus or online fund summaries. Now they rarely do so out of the goodness of their heart. In most cases, the investment company is paying the employer some sort of marketing fee which will help reduce or offset those fees.

In the past few years, a number of employee vs employer lawsuits have been filed to force companies to own up to this arrangement especially in cases where the employer allowed the investment company to use mainly high price fund options vs say low cost index fund options -or- use higher priced version of funds (ex. not offering vanguard admiral shares even though the total assets would qualify). So, many companies are changing to a 401k plan structure that charges employees for fees and then crediting them the marketing fees due for their specific portfolio mix.