rollover to 401k?

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Topic Author
genjix
Posts: 267
Joined: Sat Mar 12, 2011 1:51 pm

rollover to 401k?

Post by genjix »

Hi all,

I'm contemplating on rolling over my rollover IRA to my 401k (if possible)
the 401k has some really cheap funds like VITPX which is .02 ER.
This is a fairly new 401k, about a year and i have 23k in there and I saw the YTD admin fees were only $25. Financially sounds like it may be work it, any downside in doing this?
Louis Winthorpe III
Posts: 780
Joined: Sat Jun 15, 2013 11:17 pm

Re: rollover to 401k?

Post by Louis Winthorpe III »

I would rather keep it in an IRA with Vanguard because you have more control and more choices than in your 401(k). The admiral shares of the investor class of total stock market have an expense ratio of 5 basis points, so you'd be paying 3 basis points more, not counting the $25 fee you mentioned. 3 basis points = $30 for every $100,000 you have invested. You just have to decide how valuable those 3 basis points are to you vs having a direct relationship with Vanguard.
Topic Author
genjix
Posts: 267
Joined: Sat Mar 12, 2011 1:51 pm

Re: rollover to 401k?

Post by genjix »

Louis Winthorpe III wrote: 3 basis points = $30 for every $100,000 you have invested. You just have to decide how valuable those 3 basis points are to you vs having a direct relationship with Vanguard.
isnt $300 difference?
mhalley
Posts: 10432
Joined: Tue Nov 20, 2007 5:02 am

Re: rollover to 401k?

Post by mhalley »

Another factor is if you will have an income trajectory that will cause you to make too much money to qualify for a roth. If you anticipate that happening, and you intend to make roth contributions, then it would be worth it.
Mike
rgs92
Posts: 3436
Joined: Mon Mar 02, 2009 7:00 pm

Re: rollover to 401k?

Post by rgs92 »

Did your company tell you could do this? If not, and you are just guessing, this is most probably impossible. It is legal I think under IRS rules, but very few companies allow this.
Alan S.
Posts: 12669
Joined: Mon May 16, 2011 6:07 pm
Location: Prescott, AZ

Re: rollover to 401k?

Post by Alan S. »

genjix wrote:
Louis Winthorpe III wrote: 3 basis points = $30 for every $100,000 you have invested. You just have to decide how valuable those 3 basis points are to you vs having a direct relationship with Vanguard.
isnt $300 difference?
No, it's $30. 100 basis points equals 1%. It is small enough to only warrant consideration as a tie breaker to other more important factors.
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