Fidelity employer 401(k) question

[lulu0915]

Hello. I have a 401(k) at fidelity with an old employer. Should I move the funds to VSTVX? Or keep them in FID FREEDOM 2045 K  (FSNZX) where they are now? We have a Vanguard account

[appleshampooid]

There are a couple of considerations.

1) That fund has a 0.65% expense ratio - not great TBH. Do you have any other fund options in your 401(k) plan, or is that the only one? If you have other low cost options (e.g. an S&P500 index fund, a bond index fund, etc.) that would make it easier to stay.

2) Do you have any plans on executing a backdoor Roth IRA contribution in the future? If so, it is advantageous to keep pre-tax money in 401(k) plans. If you have access to a new 401(k) at a potential current job, it would be better (from a backdoor Roth perspective) to roll this 401(k) into your new one, if possible.

3) If you have no plans for backdoor Roth contributions, certainly you will get a better expense ratio (around 0.04%) in VTSAX through Vanguard. So depending on your answers to above, it would be a good move potentially.

[MustacheAndaHalf]

Hello. I have a 401(k) at fidelity with an old employer. Should I move the funds to VSTVX?

You might have a typo - I can't find "VSTVX", and you didn't mention the fund by name.

Or keep them in FID FREEDOM 2045 K  (FSNZX) where they are now? We have a Vanguard account

Fidelity has lower cost target date funds that would be better.  Vanguard also has lower cost target date funds.