Author Topic: What to do w/ old 401k?  (Read 1671 times)

TheInsuranceMan

  • Bristles
  • ***
  • Posts: 389
What to do w/ old 401k?
« on: November 04, 2015, 09:21:44 AM »
Situation: 27 years old, married, 1 kid, 1 on the way.
Old 401k balance with old company of $29,683.37.  This 401k is held with Fidelity, and like most, it's rate of return has been dismal this year, at 3.4%.  Fees paid to date = $35.95
It appears my vested balance is $28,064.90 - I left the company before I was 100% vested, but I haven't been with that company for 3 years, so I'm not sure what the difference between my vested balance and current balance is, thoughts on that?

Fees range from 0% to .65%
Here is what the 401k is invested in...
Large Cap Index - 25.66%
International Equity - 14.87%
International Index - 14.40%
Large Cap Value - 12.85%
Large Cap Growth - 10.01%
Bond Index - 4.98%
Small Mid Cap Value - 4.18%
Small Cap Index - 3.98%
Core Plus Fund - 3.96%
Small Mid Growth - 3.08%
Guaranteed Fund - 2.02%

Anyways, should I roll this some where?  I hear a lot on here about Vanguard and different companies like that, just looking for your MMMer's $.02!
Thanks!

MDM

  • Walrus Stache
  • *******
  • Posts: 9625
Re: What to do w/ old 401k?
« Reply #1 on: November 04, 2015, 06:39:46 PM »
Anyways, should I roll this some where?
Maybe.  Depends on 1) your rollover options, 2) the funds and fees relative to your current ones, and 3) a guess at your future needs.
1) You certainly have the the option to roll over to an IRA.  Do you also have a current 401k?
2) In an IRA, you have unlimited choices of funds and can likely minimize your fees.  Many good options at Vanguard, Fidelity, and Schwab.
3) If you ever want to do a backdoor Roth (do you think you will?), it would be good to have no traditional IRAs.

Jellyfish

  • Stubble
  • **
  • Posts: 154
  • Age: 47
Re: What to do w/ old 401k?
« Reply #2 on: November 04, 2015, 07:27:51 PM »
Like MDM suggests, you should avoid a Traditional IRA rollover if you foresee ever doing a backdoor Roth. Do you have a current employer 401k that will accept a rollover?

The difference between your vested balance and "current balance" is likely the portion of any employer match that failed to vest before you left. Your contributions are yours, matching is subject to whatever vesting rules applied. You should use the "vested balance," you would likely have forfeited any unvested balance.

PaulMaxime

  • Stubble
  • **
  • Posts: 202
  • Age: 55
  • Location: San Francisco, CA
  • Absolute power doesn't corrupt, it reveals.
Re: What to do w/ old 401k?
« Reply #3 on: November 04, 2015, 09:55:24 PM »
You do realize that 3.4% is actually ahead of the S&P 500 for the year. That's not bad for a flat year.

Personally I always roll my money into a self-directed IRA. I've done this a few times (each time I change jobs)

TheInsuranceMan

  • Bristles
  • ***
  • Posts: 389
Re: What to do w/ old 401k?
« Reply #4 on: November 05, 2015, 08:43:19 AM »
I do have a current 401k that I contribute to with my current employer. 
Probably won't do a backdoor roth conversion
With rollover options, can't I roll it over to any different investment company?  I'm fine with it staying with Fidelity, but if there are better options, I'd be interested to know.

And thanks Jellyfish - that's what I had assumed, I just figured it would have been forfeited when I left the company, not sticking around in the account.