Author Topic: 401k rollover question  (Read 1948 times)


  • 5 O'Clock Shadow
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401k rollover question
« on: January 06, 2014, 03:36:41 PM »
I thought I would post my question here since I have learned a lot from the site from the quality advice you can find on here. The company I work for recently was acquired by a hospital. My question is if I should roll my 401k from the previous employer into the 403b that the hospital offers? (there are no restrictions on rolling over into the new plan) Funds and expense ratios are below for each plan. If not should I rollover into a personal IRA account? I'm 36 and have been contributing at least the match for since I've been with the company (10 years.) Thanks for the help in advance.

Old plan: 401k
The Standard

Galliard Retirement Inc 35
Goldman Sachs Sh Dur Gov Ins GSTGX
Vanguard Int Term Treas Inv VFITX
PIMCO Total Return D PTTDX
Vanguard Balanced Indx Sig VBASX
Invesco Growth and Income Y ACGMX
American Funds Fdmnt Inv R5 RFNFX
Schwab S&P 500 Select SWPPX
Vanguard Growth Index Sig VIGSX
RidgeWorth Md-Cp Val Eq I SMVTX
1.08 %
Vanguard Mid Cap Index Sig VMISX
Vanguard MidCapGrowthIdx Inv VMGIX
Vanguard Small Cap Index Sig VSISX
Vanguard SmCap Grwth Idx Inv VISGX
Dodge & Cox Intl Stk DODFX
American Funds EuroPacifc R5 RERFX
MFS International Growth A MGRAX.lw
JPMorgan Hi Yld Bond Select OHYFX
RS Emerging Markets A GBEMX.lw
Brokerage Account

New plan: 403b

American Funds EuroPacific Growth R5 RERFX 0.55%
Lord Abbett Small-Cap Blend A LSBAX 1.36%
Vanguard Small Cap Index Inst VSCIX 0.08%
Vanguard Mid Cap Index Inst VMCIX 0.08%
T. Rowe Price Instl Large Cap Growth Inst TRLGX 0.57%
Vanguard Total Stock Market Index Inst VITSX 0.04%
Vanguard Institutional Index Inst VINIX 0.04%
American Beacon Large Cap Value Inst AADEX 0.60%
Vanguard Target Retirement 2045 Inv VTIVX 0.18%
Vanguard Target Retirement 2035 Inv VTTHX 0.18%
Vanguard Target Retirement 2025 Inv VTTVX 0.17%
Vanguard Target Retirement 2015 Inv VTXVX 0.16%
Vanguard Target Retirement Income VTINX 0.16%
Vanguard Balanced Index Signal VBASX 0.10%
PIMCO High Yield Instl PHIYX 0.55%
Vanguard Total Bond Market Index Inst VBTIX 0.07%
JPMorgan Core Bond R5 JCBRX 0.46%
JPMorgan Short Duration Bond R6 JSDUX 0.30%
American Century Capital Preservation Money Market
Inv CPFXX 0.48%


  • Pencil Stache
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Re: 401k rollover question
« Reply #1 on: January 06, 2014, 03:48:38 PM »
I think consolidating usually makes sense. I've noticed that more accounts seems to correlate to more confusion and complacency as it's just one more financial bucket that needs to be managed.

Your IRA offers the most flexibility, so it seems like the natural choice to me.


  • Pencil Stache
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Re: 401k rollover question
« Reply #2 on: January 06, 2014, 04:51:44 PM »
Those are some great options in the 403(b).  You don't say what the fees for the plan itself are.  They're probably reasonable, but it's something to check on.  Ask for the summary plan description (SPD) and look through for those plan fees.

One under-appreciated perk of employer-sponsored plans is the liability protection afforded by ERISA.  I'm not sure one way or another whether or how money that leaves an ERISA-covered plan and goes to a non-ERISA-covered plan (like an IRA) retains that protection

Finally, if you don't have a traditional IRA now, and earn enough money to be excluded from normal Roth contributions (or might in the future --getting married is a common trigger), that's a factor in favor of rolling over into the 403(b).  If you ever want to do backdoor Roth conversions in the future, it's very helpful to have no money in traditional IRAs.  You can find the mechanics for that by searching around about backdoor Roth conversions.


  • Pencil Stache
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Re: 401k rollover question
« Reply #3 on: January 08, 2014, 08:13:26 AM »
Personally, I would roll it over into a self-managed IRA because it gives you more control over what it's invested in.