partial 401k to IRA questions

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seamicsmith
Posts: 3
Joined: Tue Jun 20, 2017 11:00 am

partial 401k to IRA questions

Post by seamicsmith » Thu Oct 05, 2017 10:46 am

I guess the more articles I read the more confused I get but I have some questions about what to do with your 401k when you retire. I have a 401k with Sir Charles Scwhab and would lie to know if it would be beneficial to take a percentage of my 401k say 33% and start an IRA. I know that I will save some money with the IRA cause of less maintenance fees but I am lucky cause in my 401k there is a Capital Preservation fund/Stable Value fund that is an option and I will park a great majority of there when the market goes south like 2002 and 2008. Any assistance would greatly be appreciated.

mhalley
Posts: 5135
Joined: Tue Nov 20, 2007 6:02 am

Re: partial 401k to IRA questions

Post by mhalley » Thu Oct 05, 2017 12:16 pm

It depends on the plan whether you can make a partial rollover. After I retired, my 401k plan was all or none. You need to call hr or look at your plan documents to determine if partial rollovers are allowed. If allowed, then it is reasonable to do a partial rollover to reduce fees while maintaining access to a certain fund such as stable value. Be careful of attempting to market time. What you are looking for is the summary plan description.

seamicsmith
Posts: 3
Joined: Tue Jun 20, 2017 11:00 am

Re: partial 401k to IRA questions

Post by seamicsmith » Fri Oct 06, 2017 6:17 pm

thanks for the advice, what again is the summary plan description? and why do I need to inform myself of it? thanksabunch

JBTX
Posts: 1522
Joined: Wed Jul 26, 2017 12:46 pm

Re: partial 401k to IRA questions

Post by JBTX » Fri Oct 06, 2017 6:38 pm

How much are the fees? Some 401ks have high fees, others not so much. Usually is somewhat dependent on the size of the company.

There are some advantages to keeping it in a 401K if the fees aren't much higher.

clydewolf
Posts: 669
Joined: Tue Jul 21, 2015 12:51 pm

Re: partial 401k to IRA questions

Post by clydewolf » Fri Oct 06, 2017 7:14 pm

seamicsmith wrote:
Fri Oct 06, 2017 6:17 pm
thanks for the advice, what again is the summary plan description? and why do I need to inform myself of it?
Your 401k has a plan document that describes how the 401k operates. It lists the plan's funds, the rules for exchanging funds, taking distributions, and rules for vesting employer match and a bunch of other information about how your 401k plan works. This is a fairly good sized document. The Summary Plan Description (SPD) is the Reader's Digest version of the Plan Document. Generally the SPD will tell you all you need to know to participate in the plan. You should have been given a copy of the SPD when you joined the plan. Ask for today's version, it may be available on line.

seamicsmith
Posts: 3
Joined: Tue Jun 20, 2017 11:00 am

Re: partial 401k to IRA questions

Post by seamicsmith » Mon Oct 09, 2017 11:12 pm

Thank you again sir

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