Author Topic: employer 401k at fidelity move to vanguard?  (Read 1369 times)

lulu0915

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employer 401k at fidelity move to vanguard?
« on: May 29, 2018, 03:22:51 PM »
hello everyone. I've learned so much by just reading these posts and comments. I was hoping someone could help me with this. I have an old employer 401k at fidelity. I'm no longer employed at that company I am not self employed. I also have a Vanguard roth IRA account that's all VTSAX. Should I move my fidelity 401k to vanguard? Any reason to move it or not? thank you in advance.

Sibley

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Re: employer 401k at fidelity move to vanguard?
« Reply #1 on: May 29, 2018, 03:47:45 PM »
Fidelity vs Vanguard have evened out, both have low cost index funds. I would get the money into your full control - right now, you're subject to your former employer's investment options. If you want to stay with Fidelity, that's fine.

lulu0915

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Re: employer 401k at fidelity move to vanguard?
« Reply #2 on: May 29, 2018, 05:08:25 PM »
so if I move it to vanguard, can i put it all into VTSAX?

CupcakeGuru

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Re: employer 401k at fidelity move to vanguard?
« Reply #3 on: May 29, 2018, 05:23:08 PM »
Yes. Unless you have fantastic choices in the 401k, its best to move it into an IRA or Roth.

Telecaster

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Re: employer 401k at fidelity move to vanguard?
« Reply #4 on: May 29, 2018, 05:49:55 PM »
hello everyone. I've learned so much by just reading these posts and comments. I was hoping someone could help me with this. I have an old employer 401k at fidelity. I'm no longer employed at that company I am not self employed. I also have a Vanguard roth IRA account that's all VTSAX. Should I move my fidelity 401k to vanguard? Any reason to move it or not? thank you in advance.

It is probably easier just to keep it at Fidelity.  The Fidelity Total Market fund (FSTVX) is actually a little cheaper than VTSAX. 

erutio

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Re: employer 401k at fidelity move to vanguard?
« Reply #5 on: May 29, 2018, 06:21:41 PM »
 
Any reason to move it or not? 

1) If you move your 401k to your Roth IRA, that is a taxable event.  Depending on your age and retirement status, that may not be something you want to do right now
2) If you have a tIRA, moving your 401k to a tIRA will not be a taxable event.  However, it would complicate a future backdoor Roth conversion if you need to do it. 
3) If you fund options at Fidelity are good or comparable to Vanguards, why do you want to rollover the account?  You should still be able to buy, trade, sell the funds in your fidelity 401k, even though you don't work for the old company anymore.  The only thing you wouldn't be able to do anymore to contribute to the account.

MayDay

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Re: employer 401k at fidelity move to vanguard?
« Reply #6 on: May 31, 2018, 06:51:56 AM »
Don't 401k's have some additional protection against being sued? I think they are more protected than IRA's

dcozad999

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Re: employer 401k at fidelity move to vanguard?
« Reply #7 on: May 31, 2018, 07:45:00 AM »
Don't 401k's have some additional protection against being sued? I think they are more protected than IRA's


Depends on the state. In my state IRAs are protected.

https://www.thetaxadviser.com/content/dam/tta/issues/2014/jan/stateirachart.pdf