I was laid off from my job and now I have my 401k stranded with principal. Should I move it or leave it here? How this works?

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Sorry to hear you were laid off. You have 3 options for your 401k 1. You can leave it there and let it keep growing (you just can’t contribute any more). 2. You can roll it into your 401k at your new job. 3. You can roll it into an IRA. Note that if you go the IRA route, you might be setting up future complications if you intend to do backdoor Roth conversions in your IRAs.

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Ok thank you 🤌🏻

I left my 401k with a prior employer for around 8 years before I moved it to an IRA.

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Principal probably has really high fees.

Why would you assume this? If it was a big company, the expenses are probably very low.

I would leave it there for now until you have a new job/401k, and then roll it into your new 401k. You could just leave it there but I at least find it hard enough to keep track of my too many accounts without adding on an extra one. And the IRA option can create issues for backdoor Roth.

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