Author Topic: Roth 401k rollover - any suggestions?  (Read 2178 times)

Jessie

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Roth 401k rollover - any suggestions?
« on: January 12, 2014, 07:52:13 PM »
I recently left my first full time employer, and I had a Roth 401k with them through Mass Mutual with an ~$8500 balance. Right now I am working on contract, and I would also like to have the opportunity to continue contributing to a retirement account even though my employer is not offering one with my current status. My asset allocation is one of their pre-forumlated allocations (see below), and I have been fairly happy with the returns.

My question: should I keep my 401k with Mass Mutual and open a new Roth IRA to contribute to, or roll my 401k into a Roth IRA that I would need to open? Does anyone have any recommendations on where to open an IRA?

Current Asset Allocation:

8.04% American Century Growth Fund
7.98% BlackRock Equity Dividend Fund
2.02% Goldman Sachs Gr Opportunities
2.00% Goldman Sachs Small Cap Val Fund
3.02% Invesco Mid Cap Core Equity Fund
2.97% Oppenheimer Developing Markets Fund
4.00% Oppenheimer Real Estate Fund
13.00% Oppenheimer Rising Dividends Fund
2.01% Perkins Mid Cap Val Fund
2.01% Prudential Jennison Sm Co Fund
13.96% Select PIMCO Total Return Fund
13.93% Thornburg Intl Value Fund
3.03% Vanguard Mid Cap Index Fund
13.01% Vanguard 500 Index Fund
7.06% Vanguard Small Cap Index Fund
1.98% SAGIC Core Bond

ch12

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Re: Roth 401k rollover - any suggestions?
« Reply #1 on: January 13, 2014, 08:50:38 PM »
In your position, I'd sign up with Personal Capital and check out the fees involved with your retirement account. Vanguard is a great and easy place to open a rollover Roth IRA account; Vanguard also has famously low fees. Some of the places where your money is right now do have low rates, but others have expense ratios that I would raise a brow at. You can definitely delve into what you're paying and see if it makes sense to switch over to a low-cost brokerage.

ch12

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Re: Roth 401k rollover - any suggestions?
« Reply #2 on: January 13, 2014, 09:12:16 PM »
Run, don't walk, to Vanguard for a rollover. I just did some research, and I am wildly uncomfortable with the current expense ratios of some of those funds.

frugally

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Re: Roth 401k rollover - any suggestions?
« Reply #3 on: January 13, 2014, 09:19:50 PM »
I wholeheartedly agree that Vanguard is the best option, and that you should roll your 401k over there.  Those funds have extremely high expense ratios.  Based on the asset allocation of this account, I would also recommend checking out http://www.bogleheads.org/wiki/Principles_of_tax-efficient_fund_placement in case you have taxable accounts so you can maximize tax efficiency on your overall asset allocation.