401k how to reduce or eliminate fees

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choppyfish46
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401k how to reduce or eliminate fees

Post by choppyfish46 » Fri Nov 17, 2017 12:58 pm

I have a 401k with my previous employer and I noticed that i am charged 1 % fees
What are my options to either reduce /eliminate fees

Putnam investments 401k
fees 0.99 %
fee amount in $ 1075 ,
total portfolio amount 108,650.26

sites like personalcapital keep sending me emails stating they would be able to elimate this fees . question is if they really can ?

Rupert
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Re: 401k how to reduce or eliminate fees

Post by Rupert » Fri Nov 17, 2017 1:08 pm

Roll the old 401k over into an IRA with a low-cost provider such as Vanguard or roll it into your current provider's 401k plan if you have one and the fees are lower there.

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tadamsmar
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Re: 401k how to reduce or eliminate fees

Post by tadamsmar » Fri Nov 17, 2017 1:10 pm

If it were mine I'd probably move it to Vanguard and use low-fee index funds. I'd call Vanguard and get them to help with the move. But you might want to investigate the policies of that 401K. Some will send you a check at your address instead of doing a direct company to company rollover. That's a bit more of a hassle but still worth the trouble. You need to make sure it's done as an untaxed rollover, not a withdrawal.

There are other options. I can't tell if that is an overall fee or a fee for a specific investment within the 401K.

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flamesabers
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Re: 401k how to reduce or eliminate fees

Post by flamesabers » Fri Nov 17, 2017 2:56 pm

I agree with Rupert's post. The only way to get rid of those fees is to move all of your money out of that 401k.

sschoe2
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Re: 401k how to reduce or eliminate fees

Post by sschoe2 » Fri Nov 17, 2017 3:00 pm

Yep. That is why you should always roll a 401k to an IRA whenever you leave a job. Almost always lower fees and more options with an IRA.

choppyfish46
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Re: 401k how to reduce or eliminate fees

Post by choppyfish46 » Thu Dec 28, 2017 7:46 pm

Thanks ,I will roll it over to vanguard.
I will be back to ask questions about vanguard IRA at a later date :sharebeer

Uniballer
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Re: 401k how to reduce or eliminate fees

Post by Uniballer » Thu Dec 28, 2017 7:59 pm

Don't forget that having a big traditional IRA (e.g. from rolling over an old 401K) can be a big impediment to the back-door Roth maneuver.

pkcrafter
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Re: 401k how to reduce or eliminate fees

Post by pkcrafter » Thu Dec 28, 2017 8:21 pm

choppyfish, do you have a new 401k available? If so, you may be able to move the old one into it.

Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.

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ruralavalon
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Re: 401k how to reduce or eliminate fees

Post by ruralavalon » Thu Dec 28, 2017 8:56 pm

choppyfish46 wrote:
Fri Nov 17, 2017 12:58 pm
I have a 401k with my previous employer and I noticed that i am charged 1 % fees
What are my options to either reduce /eliminate fees

Putnam investments 401k
fees 0.99 %
fee amount in $ 1075 ,
total portfolio amount 108,650.26

sites like personalcapital keep sending me emails stating they would be able to elimate this fees . question is if they really can ?
There are two basic choices when the old 401k has high expense ratios or poor funds.

It is primarily a matter of where you can get better funds with the lowest expense ratios.

1) If the new 401k offers good funds with low expense ratios, and will accept a rollover from the old 401k, then it may be best to roll the old 401k over into the new 401k.

2) If the new 401k does not offer good funds with low expense ratios, then it may be best to roll the old 401k over to an IRA at a low cost provider like Vanguard or Fidelity.

Wiki article, 401k, ”Rollover to IRA".
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

choppyfish46
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Joined: Tue Jul 05, 2016 5:17 pm

Re: 401k how to reduce or eliminate fees

Post by choppyfish46 » Wed Jan 17, 2018 1:17 pm

To answers questions asked by op
No I do not have a good 401k to roll it into

Do i start the transfer and then once it is done pick my investment options ?
or I have to know that before I start the roll over from putnam 401k to vanguard
I left my previous job june 2016 , what are the rules for transfering from 401k to IRA ?
does it have to be within 60 days ?

TIA

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BolderBoy
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Re: 401k how to reduce or eliminate fees

Post by BolderBoy » Wed Jan 17, 2018 1:24 pm

sschoe2 wrote:
Fri Nov 17, 2017 3:00 pm
Yep. That is why you should always roll a 401k to an IRA whenever you leave a job. Almost always lower fees and more options with an IRA.
There are some select situations where rolling over a 401k to an IRA may not be the best strategy. Backdoor Roths are harder to do with a bloated IRA, for example.
"Never underestimate one's capacity to overestimate one's abilities" - The Dunning-Kruger Effect

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BolderBoy
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Re: 401k how to reduce or eliminate fees

Post by BolderBoy » Wed Jan 17, 2018 1:28 pm

choppyfish46 wrote:
Wed Jan 17, 2018 1:17 pm
Do i start the transfer and then once it is done pick my investment options ?
or I have to know that before I start the roll over from putnam 401k to vanguard
I left my previous job june 2016 , what are the rules for transfering from 401k to IRA ?
does it have to be within 60 days ?
You may begin the transfer process at any time. Usually simplest to convert everything in the 401k into cash, then make the transfer.

Generally, you will decide upon the IRA custodian to receive the transfer, call them up and ask how to do it. Decide in advance what you want the IRA to invest in (choose funds or ETFs). They will require some paperwork from you but afterwards will take care of the entire process once you have set it in motion.
"Never underestimate one's capacity to overestimate one's abilities" - The Dunning-Kruger Effect

choppyfish46
Posts: 6
Joined: Tue Jul 05, 2016 5:17 pm

Re: 401k how to reduce or eliminate fees

Post by choppyfish46 » Fri Jan 19, 2018 2:10 pm

BolderBoy wrote:
Wed Jan 17, 2018 1:28 pm
choppyfish46 wrote:
Wed Jan 17, 2018 1:17 pm
Do i start the transfer and then once it is done pick my investment options ?
or I have to know that before I start the roll over from putnam 401k to vanguard
I left my previous job june 2016 , what are the rules for transfering from 401k to IRA ?
does it have to be within 60 days ?
You may begin the transfer process at any time. Usually simplest to convert everything in the 401k into cash, then make the transfer.

Generally, you will decide upon the IRA custodian to receive the transfer, call them up and ask how to do it. Decide in advance what you want the IRA to invest in (choose funds or ETFs). They will require some paperwork from you but afterwards will take care of the entire process once you have set it in motion.
Vanguard reference is in terms of good performing index funds or as a broker like(fidelity,etrade, merrill lynch) ?

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