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advice on rollovers...

September 27th, 2007 at 07:31 pm

I have about $25k in my current employer's 401k program. It's all money I've invested, so I'm fully vested as my current employer doesn't do any matching. I was thinking about just leaving the money where it was at until I actually get hired on in 3 months and see what their plans were like. But I'm also contemplating rolling it into it's own account and just leaving it.

Any thoughts on that? Preferred companies to work with?

Posted in Saving | 5 Comments »

5 Responses to “advice on rollovers...”

  1. terri77 Says:
    September 27th, 2007 at 07:36 pm 1190921768
    1190921768

    I would leave it until I see all my options.

  2. fern Says:
    September 27th, 2007 at 07:53 pm 1190922823
    1190922823

    You said you've got it invested with your current employer's plan, but then you said you were thinking of keeping it where it is until you get hired in 3 months??

    I'm guessing you're changing jobs? If so, I would roll it over to an IRA so YOU have complete control over your investment choices and aren't limited by whatever the next employer's plan happens to offer.

    I'm partial to T. Rowe Price or Vanguard.

  3. LdyFaile Says:
    September 27th, 2007 at 08:08 pm 1190923736
    1190923736

    Fern:

    Yes I'm sorry. I'm changing jobs. Tomorrow is my last day. My current employer asked if I was going to roll it into my new employer's plan or into my own account. I hadn't even thought about it yet to be honest with everything else that's been going on.

    I'll be contract for 3 months and then after that, once I get hired on I'll find out what my options are for the new employer's plan. I was thinking it might not be a bad idea to roll what I currently have into it's own account and start fresh with new company once it gets to that point.

    My current employer doesn't mind me leaving the account as it stands right now but he said when someone else left he kept getting emails from the plan provider asking when the departed employee was going to pull their money out. Though we are with a different retirement company now.

  4. monkeymama Says:
    September 27th, 2007 at 09:50 pm 1190929845
    1190929845

    I would go for an IRA. Vanguard comes to mind (would be the best). T Rowe or Fidelity is good. You would then have complete control over fees and you could invest in ANYTHING. Which makes them much preferable.

    I kept an old 401k for a long while though, through Fidelity, because I had access to a slew of funds that were closed to the public. I rolled them all into an IRA late last year though. The fund choices were getting fewer and I decided the freedom to choose anything was more important. (Plus I rolled them out into an IRA with Fidelity and was able to keep the closed funds I had invested in already - another idea).

    Not all employers will let you roll over monies into their plan. I have to overall agree that you may just want to wait and see what is offered. True. But odds are you would be better off rolling it to an IRA with your complete control. I have NO Control over my current plan and it drives me batty. But I know my boss will reitre in a few years and I can roll it into an IRA then. I wouldn't roll my money into another employer plan, knowing what I know. Wink To get eaten up by fees and such if it is a small employer? To be limited in what you can invest in? etc., etc. The only upside to an employer plan is a match. But You won't get a match on funds from a prior employer.

  5. disneysteve Says:
    September 27th, 2007 at 11:00 pm 1190934015
    1190934015

    I agree with rolling it to an IRA. Always better to have complete control. I actually need to do this with the money in DW's 403b from her previous job. I've been procrastinating, but it is a very small amount (about $5,000) because she in the plan long before leaving the job.

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