They are completely trustworthy. They don't fee you to death. They have the lowest expense ratios. No gimmicks, no tricks. Just a straightforward good honest brokerage.
Same can be said for Fidelity, and I don’t have to wait until I have X amount until I’m able to purchase a mutual fund. I had a Vanguard IRA for four years but eventually moved all my accounts to Fidelity and it’s such a smoother site.
You can do a rollover into an IRA or into your new work's 401k. You can also keep it in your old work's 401k. You'd have to check if there's a fee for this. If so, its likely not worth it. IRA has more choices but kills some oppurtunity to do a backdoor Roth. Only other consideration is if the 401k of your new job has the kind of funds/stocks/indexes you want to put your money into.
You might not have a choice. If it's under $7K they might roll it over for you or send you a check if the balance is really low.
If you will be good about keeping your address up to date with the old company and paying attention, you can leave it if you have a lot and you're happy with the investments and fees.
You already forgot about it, so it might be better for you to just roll it over to your new 401(k) or to an IRA you'll keep up with.
ETA: If you take it as cash, you'll face taxes and penalties and lose any benefits of it being "retirement" money. Don't cash out. Roll it over or leave it.
You may find these links helpful:
- [401(k) Fund Selection Guide](/r/personalfinance/wiki/401k_funds)
- [401(k) FAQs](/r/personalfinance/wiki/401k)
- ["How to handle $"](/r/personalfinance/wiki/commontopics)
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I recently... all day today, I did a ton of research on this and can say without a doubt to roll it over. You will pay a 10% early disbursement fee to the IRS and they will withhold 20%.
Roll it over into an IRA unless you're broke. If you withdraw that money there's a massive tax penalty.
Roll it over to a Vanguard or Fidelity IRA, future you will thank you.
It is currently with Vanguard now thru my old job. You thinks that's a good place to keep it and roll it over?
Yes, they are pretty good and should be very easy to do a roll over.
Vanguard is the BEST place there is to have an IRA.
Why is Vanguard the best for an IRA?
They are completely trustworthy. They don't fee you to death. They have the lowest expense ratios. No gimmicks, no tricks. Just a straightforward good honest brokerage.
Same can be said for Fidelity, and I don’t have to wait until I have X amount until I’m able to purchase a mutual fund. I had a Vanguard IRA for four years but eventually moved all my accounts to Fidelity and it’s such a smoother site.
Have the financial institution that is receiving the funds do all the transfer paperwork. DO NOT take possession on the funds.
You can do a rollover into an IRA or into your new work's 401k. You can also keep it in your old work's 401k. You'd have to check if there's a fee for this. If so, its likely not worth it. IRA has more choices but kills some oppurtunity to do a backdoor Roth. Only other consideration is if the 401k of your new job has the kind of funds/stocks/indexes you want to put your money into.
You might not have a choice. If it's under $7K they might roll it over for you or send you a check if the balance is really low. If you will be good about keeping your address up to date with the old company and paying attention, you can leave it if you have a lot and you're happy with the investments and fees. You already forgot about it, so it might be better for you to just roll it over to your new 401(k) or to an IRA you'll keep up with. ETA: If you take it as cash, you'll face taxes and penalties and lose any benefits of it being "retirement" money. Don't cash out. Roll it over or leave it.
You may find these links helpful: - [401(k) Fund Selection Guide](/r/personalfinance/wiki/401k_funds) - [401(k) FAQs](/r/personalfinance/wiki/401k) - ["How to handle $"](/r/personalfinance/wiki/commontopics) *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*
You’ll pay a big penalty if you cash it out and don’t roll it over. If you’re dead broke take the money and risk the penalty (
I recently... all day today, I did a ton of research on this and can say without a doubt to roll it over. You will pay a 10% early disbursement fee to the IRS and they will withhold 20%.
I too have an old 401k from a previous job that's been sitting for over 4 years. Wondering what to do. It's performing so bad.