Author Topic: Pension from old employer  (Read 2103 times)


  • 5 O'Clock Shadow
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Pension from old employer
« on: April 16, 2013, 08:53:21 PM »
I have a pension from an old employer that has a vested balance of $18k. It currently is being managed by Fidelity and earning next to nothing (<1%). I called Fidelity and the pension is eligible for a lump sum distribution in that I could roll it over to an traditional IRA or move it my current employers 401k.

Would should I do? Seems like I should definitely move it. I'm 35 so it seems silly to just let it sit for so long earning nothing.


  • 5 O'Clock Shadow
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  • former credit addict
Re: Pension from old employer
« Reply #1 on: April 17, 2013, 03:17:11 PM »
I vote move it to the 401k.

Seems like you know not to do the distribution. Do not know how savvy you are at picking investments but if you are then the IRA might be a better choice if your 401k is kind of limited on investments.


  • Magnum Stache
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Re: Pension from old employer
« Reply #2 on: April 17, 2013, 03:23:18 PM »
I had the same situation a couple of years ago.  Rolled the pension balance - about $60K - over into my IRA, and it's worth about $80K now.  I know, lucky timing :-)  But I still would do the same thing today.

Keylime FI

  • 5 O'Clock Shadow
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Re: Pension from old employer
« Reply #3 on: May 30, 2013, 01:13:29 PM »
Rolling it over to an IRA would allow you to choose from a whole universe of investment options. Rolling it to a current employer 401k would have limited investment options and ,likely, more fees.

Good luck


  • Handlebar Stache
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Re: Pension from old employer
« Reply #4 on: May 30, 2013, 01:22:03 PM »
Before you do anything, investigate your options.  For example, at the end of this year I will vest in a cash balance pension worth 35 or 40k, a fairly piddling amount.  The pension payout will be small when I am eligible to flip the switch and start getting payments.  However, my employer allows me to use 401k money to buy additional pension credit once I start receiving payments.  So this gives me the option of buying inflation-adjusted payout annuities with no carrier risk.  Since the 401k is fairly well run and expenses are low, I have no plan to move the pension money and give up the option of buying an annuity I could not get on the open market.