Transferring old 401k to new 401k....

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vaught
Posts: 58
Joined: Fri Aug 11, 2017 2:00 pm

Transferring old 401k to new 401k....

Post by vaught » Thu Mar 01, 2018 12:57 pm

Anything I need to be aware of or consider?

My old 401k is invested in the identical funds that my new 401k is invested in (i.e., same expense ratios). However my new 401k has zero expenses other than the expense ratios. I was never able to fully get comfortable with what other fees were being charged on my old 401k other than the expense ratio.

I'm planning on telling HR at my new employment of the plan to transfer my old 401k. I imagine I will need to initiate the request first through the provider of my old 401k?

I don't currently do back door roth contributions but I could see that happening in the future. For that reason I was informed by a fellow Boglehead to avoid transferring the old 401k directly to a traditional ira as it may complicate future backdoor roth contributions.

Thanks.

mhalley
Posts: 5618
Joined: Tue Nov 20, 2007 6:02 am

Re: Transferring old 401k to new 401k....

Post by mhalley » Thu Mar 01, 2018 1:13 pm

You might be out of the market for a short while while the funds are transferred, but the transfer sounds like a great idea.
https://www.investopedia.com/articles/p ... ployer.asp

N10sive
Posts: 492
Joined: Thu May 05, 2016 6:22 pm

Re: Transferring old 401k to new 401k....

Post by N10sive » Thu Mar 01, 2018 3:15 pm

You don't have to tell your HR. Just call up your current 401k and request a transfer. They will arrange everything and probably call your old 401k with you on the line to initiate the transfer.

Then usually a letter/request is sent to your old companies HR(from your old 401k company) to confirm you are no longer an employee and then the request will be processed. This in my experience takes the most time, but it depends on the company.

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