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Article on what to do with old 401(k)s when you switch jobs

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K Frame:

--- Quote from: French G. on October 20, 2021, 08:27:00 AM ---Anything wrong with leaving them?

--- End quote ---

Generally no, as the article says. But, it's another account to track and you need to be aware of any fees that might be triggered once you leave that employer.

I left my SAIC 401(k) with Vanguard when I separate in 2019 because I really like Vanguard. I have personal investments with them as well as the 401(k) so it made sense to leave everything there.

But, I have a Voya 401(k) from my last job and it would be nice if I could bring that over to Fidelity, which is where my current 401(k) is.

K Frame:
"I could not leave them where they were."

I've heard of other plans that are laid out like that. From what I understand, those are normally from smaller companies that have small 401(k) offerings. Leaving them generally incurs some costs to the former employer as well as possible fees to the account holder.

zahc:
I just left mine because my previous employer fund options were better, or at least I thought so at the time. I couldn't transfer ot directly without selling the funds as re-buying what I considered worse funds.

Nowadays I care a lot less and I will probably roll it to my new one at some point just to simplify.

MillCreek:
As I left various jobs, I rolled all the old 403(b) accounts into my IRA.  I like the investment options at Merrill Lynch much better, I earn more interest/dividends/capital gains with a larger single account balance, and I am not paying management fees to whichever company ran the retirement plan at my old job.  I have a 403(b) with Fidelity at my current job, but I will be rolling that over to my IRA when I leave.

JTHunter:

--- Quote from: K Frame on October 20, 2021, 07:29:08 AM ---https://www.cnbc.com/select/how-to-manage-your-401k-account-after-switching-jobs/

OK, one thing in here surprised me a lot... I didn't know it is possible, in some circumstances, to roll an old 401(k) from a previous employer into your new employer's 401(k). I had the idea that 401(k)s were like islands... they couldn't mingle once you left the island.

I need to check into that because I have a 401(k) from my last job that has about $25k in it that's just sitting at Voya, and it would be very nice to be able to roll that money into my current company's 401(k).
--- End quote ---

Be careful.  As has been mentioned, there may be fees involved.  The new accounts may not be as beneficial as what you have at Voya.  If you have a financial advisor (not the company person), ask them about rolling the Voya into a an IRA with them.

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