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Pro
Transfer
If you take the cash out, you’ll be taxed like 30 or 40%. Transfer to another 401k account and you get to keep the total funds untaxed until retirement.
But dude, Google, YouTube? Lol
Eh, Fishbowl is just another medium like Google and YouTube. I trust you guys more 😉
Or you can transfer to your own IRA. Just have the check sent directly to your broker. Never have money sent to you.
Benefits of transferring to new 401k: still allows you to do back door Roth IRAs without being subject to pro-rata rule.
Benefits of transferring to IRA: full control
Backdoor Roth is clutch, and if you will have similar and/or increased pay going forward you should 100% move your money to your new employers 401k (or just keep it where it is now), avoid the traditional ira cuz that will stop you from doing back doors as M1 said.
Pro
Whatever you do, transfer or roll it over. Don’t take the cash. Compounding builds your nestegg for later.
Chief
IMO, depends on how much you have in your 401k at the moment. Generally, if the amount is small, you may be required to cash out. Alternatively, if you don’t have much in there, I’d suggest cashing out anyway. Otherwise, if it’s a rather large chunk—definitely roll it over to your new firm’s 401k
Rollover ira. Then each time you leave a firm, transfer your 401k into the ira.
I left EY 4 years ago. You have to go through a few steps, but you can transfer 401k from the EY-sponsored Fidelity account to a rollover IRA Fidelity account fairly easily
Rollover to IRA- you will need to do it again in the future when you leave new job, worth having an account ready.
Also do it now, can be a real pain to rollover once you have left if the company decides to switch providers as a lot of times they arent very good at notifying previous employees of that switch...
Transfer . If u take cash u will need to pay tax on it
You likely cannot transfer to the new employers plan but you can set up an IRA. My spouse did this so now he has EY plan and ex-Deloitte plan in a non-employer tied Vanguard account.
Untrue...
Roll over and take full control of your retirement fund.
I would rollover to your own IRA since it gives you more investment options. Also I think the pro-rata rule actually benefits you if you are over the limit for the Roth IRA since the denominator is higher.