[USER]

Hi everyone, I am about to start a new job at a new company for the first time in 8 years. The job will be in a slightly LCOL area with a 20% pay increase.

I’ve been paying into a 401k for about 7 or the last 8 years.

I seem to have the option to keep my current 401k right where it is, or move it to my new company’s program.

Why would you keep it where it is vs move it? And do I have any other options?

Thanks for any input!

[Jule]

It depends, who manages the 401k on your old job and who manages the 401k at your new job?

Also, it’s better to consolidate, if at all possible.

If you are a higher earner and contribute to a Roth IRA, don’t roll it to a traditional IRA.

This would create tax issues and impede you from continuing those contributions.

[Lisa]

Many roll there’s to new accounts. I’ve opted to leave mine as they were all Vanguard with is rated highly as a low fee brokerage

[Chad]

I would say if you’re old 401k has good funds and is doing well there’s no harm in leaving it where it is.

However, if your new 401k is better, then it makes perfect sense to roll it over.

It also might makes sense to roll it over to consolidate so you have less to manage and it makes it easier to manage allocation percentages.

[Nicholas]

You can roll it to a traditional ira at vanguard or other major investment firm to invest it in low cost index funds.

Many 401k plans have higher investment fees so I would just look into that before deciding on your next steps.

[Michele]

You can also roll into your own rollover account, Fidelity or Vanguard, etc.

Traditional or Roth depends on your current allocations. Read A Simple Path to Wealth.

[Fritze]

Compare fund, you can do both. Also, if you have pretax IRA and cannot do backdoor Roth conversion without triggering pro- rata rule, then ask if current new 401k can do a reverse rollover from IRA into it then do backdoor Roth.

[Flores]

I’ve always found it easier to just roll existing funds into the new 401k. I just prefer to have things streamlined and it will still be in a target date fund

[Author]

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