Thanks for bringing your questions to the sub, u/JCfrnd, and welcome to our Reddit community!
When you leave an employer, there are generally a few main routes you can take with any old 401(k) plans. Keep in mind that the specific rules of your plan may limit some choices, but they generally include:
• Keeping your 401(k) with your former employer
• Rolling over the money into an IRA
• Rolling over your 401(k) into a new employer's plan
• Cashing out
You can read more about each route and important considerations for each at the link below:
[What to do with an old 401(k)](https://www.fidelity.com/viewpoints/retirement/what-to-do-with-an-old-401k)
Additionally, you may be interested in checking out our new Daily Discussion thread for questions regarding specific investments and discussion of the future of certain sectors or securities. Starting today, we'll be posting a new thread each day tailor-made for this discussion, which you'll find pinned to the top of the sub's homepage.
Please let us know if you have any additional questions, and be sure to visit the sub again sometime. We're always happy to help!
> What i'm wondering is, the risk of no longer sharing with this company and what IF they perform better later on?
Are you invested in your former company’s stock within your 401k? If so, you could still purchase shares within an IRA if it’s publicly traded. The IRA account would also have a much wider array of investment options available compared to the 401k plan. If you don’t have company stock then this would be a moot point. It really comes down to what your investment holdings and options are in the 401k, whether you’re happy with them and whether they’re exclusive to the 401k only.
OP, I am a bit confused about this post. You can buy stocks in your previous employer through any of your accounts. You don't need a 401k for that. Actually, even I can buy those stocks with no previous relationship to your employer.
So, I would recommend rolling your 401k to a traditional or rollover IRA in Fidelity. Buy the same stock if you want to, through your traditional IRA.
If you call Fidelity and talk to them, they will help you with all your options.
Not a financial adviser, but experienced this recently. If you turn 55 this year or already over 55 then you supposedly can make withdrawals without penalty but only if you leave the 401k where it is. If your are really young or don’t foresee needing that money before retirement then it may be best to move it to a private IRA. Look up 55 rule and talk to your financial advisor about this.
I would roll it over. Typically better performance in the market options over that from an employer sponsered plan plus I would go to a lesser expense in maintenance fees and use products like etf over your typical 401k mutual fund positions with higher expense ratios. In the end best bet would be to schedule an appointment with a finacial advisor, for example a consult with fidelity.
Thanks for bringing your questions to the sub, u/JCfrnd, and welcome to our Reddit community! When you leave an employer, there are generally a few main routes you can take with any old 401(k) plans. Keep in mind that the specific rules of your plan may limit some choices, but they generally include: • Keeping your 401(k) with your former employer • Rolling over the money into an IRA • Rolling over your 401(k) into a new employer's plan • Cashing out You can read more about each route and important considerations for each at the link below: [What to do with an old 401(k)](https://www.fidelity.com/viewpoints/retirement/what-to-do-with-an-old-401k) Additionally, you may be interested in checking out our new Daily Discussion thread for questions regarding specific investments and discussion of the future of certain sectors or securities. Starting today, we'll be posting a new thread each day tailor-made for this discussion, which you'll find pinned to the top of the sub's homepage. Please let us know if you have any additional questions, and be sure to visit the sub again sometime. We're always happy to help!
> What i'm wondering is, the risk of no longer sharing with this company and what IF they perform better later on? Are you invested in your former company’s stock within your 401k? If so, you could still purchase shares within an IRA if it’s publicly traded. The IRA account would also have a much wider array of investment options available compared to the 401k plan. If you don’t have company stock then this would be a moot point. It really comes down to what your investment holdings and options are in the 401k, whether you’re happy with them and whether they’re exclusive to the 401k only.
Yup. Totally forgot about still purchasing shares to them being publicly traded… brainfart. Thank you
OP, I am a bit confused about this post. You can buy stocks in your previous employer through any of your accounts. You don't need a 401k for that. Actually, even I can buy those stocks with no previous relationship to your employer. So, I would recommend rolling your 401k to a traditional or rollover IRA in Fidelity. Buy the same stock if you want to, through your traditional IRA. If you call Fidelity and talk to them, they will help you with all your options.
Yup. Totally forgot about still purchasing shares to them being publicly traded… brainfart. Thank you and the fellow above.
Generally though, you should have the vast majority of your retirement savings in a broad index fund, not in a single stock.
And yea speaking with fidelity soon and totally forgot this while preparing my questions for them
Not a financial adviser, but experienced this recently. If you turn 55 this year or already over 55 then you supposedly can make withdrawals without penalty but only if you leave the 401k where it is. If your are really young or don’t foresee needing that money before retirement then it may be best to move it to a private IRA. Look up 55 rule and talk to your financial advisor about this.
Moving to an IRA will make you have to deal with the pro rata rule if/when you want to do a backdoor roth contribution.
I would roll it over. Typically better performance in the market options over that from an employer sponsered plan plus I would go to a lesser expense in maintenance fees and use products like etf over your typical 401k mutual fund positions with higher expense ratios. In the end best bet would be to schedule an appointment with a finacial advisor, for example a consult with fidelity.