Conversation Starter
Related Posts
Hey sharks
I got offer on Citiustech Healthcare Technologies
May I know how WLB in this company, I see in glassdoor and ambitions contains positive and negative. Is it worth to join? Is it useful for me to enhance my career for long run? How about the retention pay? If we leave the company we need to pay entire retention pay?I have other wipro and CTS, which company is better to join?
Bowl Leader
Community Builder
More Posts
Best high yield savings products?
Anyone buying amzn ahead of earnings today?
Conversation Starter
Conversation Starter
Pro
Pro
Hello All, I have one question. I was a fresher and joined one organization as external employee with third party payroll. I worked as external payroll for 1 year then I became permanent employee of organization was working. When i was a fresher my salary was below tax slab so my external exployer did not generate any form 16 for me. When tried to switch my new organization wants me to submit form 16 as BGC process. Will my offer get reverted?Cognizant Tata Consultancy HCL Technologies Accenture
Additional Posts in Personal Investment Chatter
Rising Star
Conversation Starter
Used car prices starting to come down?
Chief
Conversation Starter
Rising Star
Visual Storyteller
Earnings for next week.!
Conversation Starter
New to Fishbowl?
unlock all discussions on Fishbowl.
Small downside that might not matter. You can only use the rule of 55 for the 401k at the company you retire from.
I agree. That was one of the reasons I said it might not matter. The other reason it might not matter is that, presumably, if you have the assets to retire before you are 59 1/2, you probably have assets outside a traditional 401k that can carry you to 59 1/2 (Roth IRA or 401k or a brokerage account).
I left my prior one as is, in fidelity, and frankly I’ve been super happy with the performance of the plan. It’s outperformed my vanguard plan.
Conversation Starter
Need to do Roth backdoor every year so converting to tradition IRA is not an option
Chief
Nice.
I work in Human Resources and have managed several 401(k)s. Here is what I tell people. If you want to manage your own money, role it over into a Self-Directed Brokerage Account. This is for financially educated people. I left a job with over $300k in 2020 and last year I hit $1m, by investing myself. I had been investing for almost 15 years at that point, so I knew what to do. I only invest in income producing assets. Like stocks and ETFs that pay dividends.
If you are not financially literate, then leave it in there till you're able to manage your own money. Employer retirement plans are a vehicle you can use, like UBER, someone else is driving. I'd rather drive though. Look into SDBAs
Chief
What are you talking about? You want to OP to withdraw his whole 401k while he is still working? That is ridiculous.
If you have the option to leave the old 401k where it is and it had lower fees and better options, then I would not have an issue leaving it there. Your second concern is not an issue in my opinion
Rising Star
Depends. If the dollar amount is significant, leaving it there while you explore options makes sense.
If the amount is small, why quibble? Just move it and invest calories into other matters of importance.
Roll it over to a decent bank that your primary investments might be in while capturing the match associated with the new one, rinse and repeat. I use Schwab and have done this with all of mine.
They said they don’t want an IRA
Roll to an IRA….
They don’t want an IRA
Don’t do what Law Fire Said… You can’t roll to a Brokerage account unless you want to pay taxes and possibly get penalties if under 59.5. You roll it over into a Rollover IRA to keep the tax deferred nature of the funds. Many firms like Fidelity and Chase. Schwab have education and guidance tools to help assess your time horizon and risk tolerance to create a plan you can manage. No need for dividends now if you’re still accruing your balance and not taking income. Employer sponsored plans are self directed. You’re in command there’s no UBER driver. Know what you own and know why you own it!!!
I think LF was saying to move it to an Ira. The op does not want to do that because he/she wants to do back door Roth and does not want to run into the pro rata problem.
Chief
I suggest quantifying the impact. How many basis points better is it, approximately? How big is the balance? Multiply and get an annual benefit from keeping it separate. Then mull whether you prefer the benefit or the simpler account structure. :)