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Post by Deleted on Jul 6, 2015 19:15:58 GMT -5
I actually just changed employers and rolled my Wells Fargo Roth/Traditional 401k into my Vanguard Roth/Traditional IRA's. It couldn't have been more simple, the Vanguard rollover specialist called Wells Fargo with me to initiate the rollovers and my money was at Vanguard a week later.
My old 401k actually had Vanguard funds with a slightly lower expense ratio than an individual can get through Vanguard themselves but I would much rather consolidate at one place.
My new employer has great benefits but the 401k is full of expensive specialty funds. There are no good International or bond funds but at least there is a cheap Vanguard S&P 500 fund where I will put my entire allocation, I will just have to use my IRA to get to my desired overall allocation. I figure when I have a couple years in I can start asking for other good options.
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myrrh
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Post by myrrh on Jul 7, 2015 11:06:13 GMT -5
Just to add another wrinkle, which one would hopefully never actually come into play. 401ks are safe from lawsuits and bankruptcy, while state laws vary on protection of IRAs. My state has no protection at all for IRAs. So if your 401k plan is good it's another consideration to leave your money there.
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chiver78
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Post by chiver78 on Jul 7, 2015 12:37:57 GMT -5
wow, that's good to know. I would have never guessed that to be the case!
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chiver78
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Post by chiver78 on Oct 16, 2015 10:09:53 GMT -5
bumping this thread because I just received the welcome package from Voya, who handles my new employer's 401k plan. I had to wait a month to sign up for the 401k plan in the first place, and then I guess it took some time to mail out the package. I have so far left the old 401k where it was, just updated my contact information for T.Rowe Price. I have spent enough time with the new company to know that I won't likely be staying there for 14 years like the last place, so I'll likely just leave the T.Rowe Price account as is and wait until I make my next move before probably just rolling both into one IRA or something like that. I have re-read this thread before making this post. what should I be looking for with the new 401k?
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yogiii
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Post by yogiii on Oct 16, 2015 10:11:09 GMT -5
Low fee index funds.
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NomoreDramaQ1015
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Post by NomoreDramaQ1015 on Oct 16, 2015 10:20:48 GMT -5
I left my 403(b) where it's at for now. According to last the statements I got I am on track funds wise.
I should move it over to an IRA here in the near future. Things have just been so chaotic this year I decided since my account is doing well to leave it alone, one less thing to worry about. If they changed my funds or it was doing poorly I'd make it a higher priority.
I'll probably move my 403(b) into a IRA with Fidelity in the new year.
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ArchietheDragon
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Post by ArchietheDragon on Oct 16, 2015 15:48:18 GMT -5
Contribute 15%
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teen persuasion
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Post by teen persuasion on Oct 16, 2015 20:02:47 GMT -5
DH's new employer has Voya handling their 401k. Ewww, hate it. Ridiculous high fees, terrible choices, lame website.
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chiver78
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Post by chiver78 on Oct 17, 2015 13:55:08 GMT -5
DH's new employer has Voya handling their 401k. Ewww, hate it. Ridiculous high fees, terrible choices, lame website. oh awesome. guess I need to make sure I move this one when I eventually leave this company.
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chiver78
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Post by chiver78 on May 10, 2016 11:11:38 GMT -5
bumping this thread to ask another question. my company is going to be bought by another one, the close is scheduled for next month unless something changes. we have actually already stopped contributions to 401k/stock for May in advance of the close. so between the waiting period last summer and already stopping now, I've probably got 6 or 7 months' worth of contributions. I don't have any information on the new company's 401k, and won't have it until after the close.
obviously the right answer is to roll my Voya funds into the IRA I opened for the last rollover. however, I just installed a fence and the spare cash wouldn't suck to have right now. what kind of tax hits would I be looking at if I just cashed it out? it's 6 or 7 months of a 3% contribution. if there's even $5000 in the account, I'd be shocked.
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Post by The Walk of the Penguin Mich on May 10, 2016 11:20:44 GMT -5
You'll get hit with a 20% tax, whatever state income tax you have to pay on it, and a 10% penalty.
So if you have $5000 in it, you'll be seeing less than $3500.
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justme
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Post by justme on May 10, 2016 11:24:42 GMT -5
I believe the 20% is just what the feds withhold and the actual amount you'll be paying is regular income tax on the entire amount. So if you you're in the 15 bracket it'd actually end up being that but if you're in the 25 you'll owe more than they withheld.
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phil5185
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Post by phil5185 on May 10, 2016 11:37:10 GMT -5
You MA rate is 5.2% - so 20% to Feds 10% penalty for early cash-out. That costs $1760 - ie, $3240 net. Gonna make that a pretty expensive fence, lol.
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chiver78
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Post by chiver78 on May 10, 2016 11:55:19 GMT -5
ugh, okay. thanks for the quick replies. guess I just cut back the spending like originally planned.
was worth asking, though.
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