Author Topic: Roll Over 401(k) while still on the job?  (Read 1779 times)

pirate_wench

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Roll Over 401(k) while still on the job?
« on: March 20, 2014, 11:00:55 AM »
After 10 years, I finally compared my expense ratio at Fidelity to Vanguard, and realized I've been foolish and lazy (.68 for my 401(k) and .81 for the same fund but as a Roth IRA).  I can obviously roll my Roth IRA over to Vanguard, but is there a way to roll over my 401(k) while still working for this company? Most of what I read discusses rolling over after you move jobs.

Thanks!

p.s. to give credit where credit is do, I love the Fidelity Retirement Quick Check program. It is a really cool tool, but not sure it's worth it for such a high expense ratio :(

matchewed

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Re: Roll Over 401(k) while still on the job?
« Reply #1 on: March 20, 2014, 11:16:44 AM »
To my knowledge you cannot roll an active 401k over.

DeepEllumStache

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Re: Roll Over 401(k) while still on the job?
« Reply #2 on: March 20, 2014, 11:21:07 AM »
My Fidelity 401k account through work has the option of BrokerageLink account.  You move the money into there and the mutual fund options in that account have much lower fees.  Does your plan have an option like that?
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matchewed

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Re: Roll Over 401(k) while still on the job?
« Reply #3 on: March 20, 2014, 11:24:52 AM »
Alternatively you could lobby your HR department with other employees to open up better options as Fidelity does have the Spartan funds which are quite comparable to Vanguard in the Exp. Ratio department.

wtjbatman

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Re: Roll Over 401(k) while still on the job?
« Reply #4 on: March 25, 2014, 01:03:56 AM »
Depends on the 401k plan. Some allow it (it's generally called an in-service 401k rollover or distribution). You'll have to investigate your own plan details.

FYI, I've never had a 401k that allowed it, but they are out there. Or so I'm told.

Frankies Girl

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Re: Roll Over 401(k) while still on the job?
« Reply #5 on: March 25, 2014, 01:32:52 AM »
I've got my 401k through Fidelity and I have consolidated my other accounts there as well.  I do have the option to invest in Spartan index funds (at least the total stock market index) in my 401k and with the Spartan series available for my IRAs and such, there's no reason to move my stuff to Vanguard, since I'm paying roughly the same as I would at Vanguard for better service and tools. Fid rolled out the Spartan series a while back as a loss leader - to get you in the door and to compete with the low cost index funds available from places like Vanguard, but they hope you'll also start sampling the more expensive funds as well. But you don't have to do that.

Don't get me wrong, Vanguard is an awesome company, but you can do just as good at Fid, and they do have superior customer service and user interface/website tools. So look into the Spartan series stuff, ask at your work about adding it to your 401K (if it isn't in there already) and don't worry about it. ;)
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