Author Topic: Another 401(k) rollover question  (Read 435 times)

FIRE 20/20

  • Bristles
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Another 401(k) rollover question
« on: June 13, 2019, 09:36:00 AM »
I recently FIREd and was going to roll my Fidelity 401(k) over to Vanguard.  However, this thread:
https://forum.mrmoneymustache.com/investor-alley/noob-question-on-what-to-do-with-401k-after-leaving-company/
gave me pause.  My situation is a little different, so I didn't want to pollute that thread. 

I believe I have zero fees associated with my Fidelity 401(k).  I can't find any, but financial institutions are better at hiding these things than I am at finding them.  I don't think there's any reason for me to do a backdoor Roth at this point since I'm FIREd.  I'm not 55 so the rule of 55 doesn't apply to me.  Based on the information in the other thread, it sounds like the only things I need to look at are to see if my state protects 401(k)s better than IRAs, and if I really am paying zero fees.  If I'm paying fees that I haven't found and my state doesn't have better protections for 401(k)s, then I should do as I had planned and move my money to Vanguard.  If I'm not paying fees and my state does have better protections then I should leave it where it is. 

Do I understand correctly?  I had just naively assumed that moving everything to Vanguard would be better and to be honest I would just rather have everything in one place.  But if there's a reason to hold onto both then I will do that.

Thanks!

appleshampooid

  • Bristles
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Re: Another 401(k) rollover question
« Reply #1 on: June 13, 2019, 11:01:59 AM »
I recently FIREd and was going to roll my Fidelity 401(k) over to Vanguard.  However, this thread:
https://forum.mrmoneymustache.com/investor-alley/noob-question-on-what-to-do-with-401k-after-leaving-company/
gave me pause.  My situation is a little different, so I didn't want to pollute that thread. 

I believe I have zero fees associated with my Fidelity 401(k).  I can't find any, but financial institutions are better at hiding these things than I am at finding them.  I don't think there's any reason for me to do a backdoor Roth at this point since I'm FIREd.  I'm not 55 so the rule of 55 doesn't apply to me.  Based on the information in the other thread, it sounds like the only things I need to look at are to see if my state protects 401(k)s better than IRAs, and if I really am paying zero fees.  If I'm paying fees that I haven't found and my state doesn't have better protections for 401(k)s, then I should do as I had planned and move my money to Vanguard.  If I'm not paying fees and my state does have better protections then I should leave it where it is. 

Do I understand correctly?  I had just naively assumed that moving everything to Vanguard would be better and to be honest I would just rather have everything in one place.  But if there's a reason to hold onto both then I will do that.

Thanks!
Sounds good to me. You covered all the various contingencies where keeping it at the old firm might make sense.