Author Topic: Old 401k rebalance  (Read 1067 times)

MoneyGoal

  • 5 O'Clock Shadow
  • *
  • Posts: 17
Old 401k rebalance
« on: March 18, 2019, 11:41:53 AM »
Hi,

I have an old existing 401k.
I want to reallocate existing funds into one fund.
Can I do this without any tax implication?
Based on what I read online, seems like it is fine, but I am worried.

Thanks.

RWD

  • Walrus Stache
  • *******
  • Posts: 6595
  • Location: Arizona
Re: Old 401k rebalance
« Reply #1 on: March 18, 2019, 11:46:06 AM »
Yes, you can buy/sell within a 401k (or other tax sheltered accounts) without any tax consequences.

MoneyGoal

  • 5 O'Clock Shadow
  • *
  • Posts: 17
Re: Old 401k rebalance
« Reply #2 on: March 18, 2019, 12:29:38 PM »
Thanks!

TomTX

  • Walrus Stache
  • *******
  • Posts: 5345
  • Location: Texas
Re: Old 401k rebalance
« Reply #3 on: March 19, 2019, 06:36:46 AM »
Why do you want to keep the old 401k? Often 401k fees/expenses are high, especially old plans.

Why not roll it into an IRA or your current 401k?


PDXTabs

  • Walrus Stache
  • *******
  • Posts: 5160
  • Age: 41
  • Location: Vancouver, WA, USA
Re: Old 401k rebalance
« Reply #4 on: March 19, 2019, 09:07:40 AM »
Often 401k fees/expenses are high, especially old plans.

Is there some law of nature that old 401(k)s have higher fees? My old Fidelity 401k is great. I'm very careful not to transfer into my new Transamerica 401k which is horrible. Also, by not transferring into an IRA I allow myself to contribute to a back door Roth IRA.

 

Wow, a phone plan for fifteen bucks!