Question on Roth IRA and vested 401k

[nisryus]

So long story short, I got the slip today.

I have 401k with my company and when I checked thje entire amount is already listed as vested. I just maxed my Roth IRA contribution last month. So my question is, should i just leave the vested 401k alone for now?

 

[Dr. Detroit]

You can choose to roll it out of the 401K and into your IRA. It allows you greater control over investments and avoid fees.
Often terminated employees are forced out if their balance is below a certain threshold or charged a annual fee of say $50 - $100/yr - all dependent on the company 401K plan document.

 

[blckgrffn]

So long story short, I got the slip today.

I have 401k with my company and when I checked thje entire amount is already listed as vested. I just maxed my Roth IRA contribution last month. So my question is, should i just leave the vested 401k alone for now?

Sorry to hear that. I hope you are off too new opportunities!

Personally, I took this opportunity to transfer mine to Vanguard where I can be completely in control of the fee structure, having way more freedom in what I invest in, etc.

With regards to the Roth IRA remember you can always access your principle without penalty. I hope it doesn’t come to that, I would consider this the last buffer before dipping into tax penalty funds.

That’s what I would do. Not a financial advisor

 

[sportage]

Depending on the company you're 401K is with. How's their stock doing? I left my 26 year 401K in place and during 2018 thru the end of 2019 the stock doubled. $101 a share to $209 a share. Was $19 when I started in 1991. Since, it's hovered around that $200 mark.

 

[deadlyapp]

Depending on the company you're 401K is with. How's their stock doing? I left my 26 year 401K in place and during 2018 thru the end of 2019 the stock doubled. $101 a share to $209 a share. Was $19 when I started in 1991. Since, it's hovered around that $200 mark.

Company your 401k is with has no bearing on its performance... You're talking about an ESPP or similar. My last company had a "pension" which was really just basically stock options tied to age & years of service.

I'd leave your 401k as is. If you start at a new company with another 401k, just roll it all in.

 

[Exterous]

There isn't enough information here to say for sure one way or the other. Will they make you leave regardless? Will they charge you fees to stay? What are your 401k fund options like, including Expense Ratios?

Some companies have absolute garbage fund options so moving to an IRA would be a better choice in those situations. Some have great options you can't get yourself (They may have pooled with other companies or be a megacorp). I fall into the latter category so will ride these plans as far into the sunset as I can. 0.015% ER for domestic stock index fund, 0.05% for international. There's~25 funds under 0.055% ER. No annual record keeping fees or anything like that

 

[nisryus]

The 401k is managed by Fidelity, and it was carried over from another institution (i forgot the name). Can't recall what fund options were selected but all I know is that it has been doing very well all these years.

Actually the HR lady finally answered my questions, and there is no fees if i elected to stay. She also suggected me to leave the plan as it is for now.

 

[Exterous]

The 401k is managed by Fidelity, and it was carried over from another institution (i forgot the name). Can't recall what fund options were selected but all I know is that it has been doing very well all these years.

Actually the HR lady finally answered my questions, and there is no fees if i elected to stay. She also suggected me to leave the plan as it is for now.

With that being the case you have access to a pretty good selection of funds. The next question is: are any of those something along the lines of their institutional shares ($5M minimum investment)? Those typically mirror the 'investor class' ($0 minimum) except that the fees charged via Expense Ratios are less then you would get on your own. If so there is a decent reason to stay. If not then its a little bit more up to you in terms of what you want organizationally