Moving 401k

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Topic Author
CuzzinOlaf
Posts: 6
Joined: Fri Dec 07, 2012 12:17 pm

Moving 401k

Post by CuzzinOlaf »

Hi everyone, sort of new here (haven't posted in a while) and I have a two part question:
  • I have been with my current employer for almost 20 years and have roughly $700k in my 401k with them through Voya. Around the time that things started to get crazy with Covid I "enlisted" in their managed plan that I think charges around 1%. After going back and looking at the history now, I see they really aren't doing too much and it appear they only adjust the percentages of my contributions between funds and I'm thinking about cancelling that. It looks to be a ripoff and from what I'm reading here, that 1% is too high.
  • The other thing I was wondering is if I could move my 401k (or a portion) into something else outside of Voya with less fees and maybe better funds. Not sure if I would need to contribute to that fund if I did it or how this works. I would keep my existing 401k since my employer matches 4% and gives me 3% annually.
count damoney
Posts: 195
Joined: Wed Dec 02, 2020 12:13 pm

Re: Moving 401k

Post by count damoney »

CuzzinOlaf wrote: Wed Oct 30, 2024 1:52 pm Hi everyone, sort of new here (haven't posted in a while) and I have a two part question:
  • I have been with my current employer for almost 20 years and have roughly $700k in my 401k with them through Voya. Around the time that things started to get crazy with Covid I "enlisted" in their managed plan that I think charges around 1%. After going back and looking at the history now, I see they really aren't doing too much and it appear they only adjust the percentages of my contributions between funds and I'm thinking about cancelling that. It looks to be a ripoff and from what I'm reading here, that 1% is too high.
  • The other thing I was wondering is if I could move my 401k (or a portion) into something else outside of Voya with less fees and maybe better funds. Not sure if I would need to contribute to that fund if I did it or how this works. I would keep my existing 401k since my employer matches 4% and gives me 3% annually.
What is your age?
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retired@50
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Re: Moving 401k

Post by retired@50 »

CuzzinOlaf wrote: Wed Oct 30, 2024 1:52 pm
  • The other thing I was wondering is if I could move my 401k (or a portion) into something else outside of Voya with less fees and maybe better funds. Not sure if I would need to contribute to that fund if I did it or how this works. I would keep my existing 401k since my employer matches 4% and gives me 3% annually.
See link below. It might be possible if your plan allows it, and you're over 59.5 years old.

More details here: https://www.bogleheads.org/wiki/401(k)# ... stribution

Regards,
"All of us would be better investors if we just made fewer decisions." - Daniel Kahneman
plog
Posts: 105
Joined: Wed Mar 20, 2019 9:31 am

Re: Moving 401k

Post by plog »

I have been with my current employer for almost 20 years and have roughly $700k in my 401k with them through Voya....
...I was wondering is if I could move my 401k (or a portion) into something else outside of Voya...
No you cannot move it outside your employer's 401k plan without cashing it out and paying taxes and penalty. Even the bad fees they charge isn't worth that.

I would get out of their managed fund, once I spent some time reading this site. Bone up on investing, read through the funds they offer outside of their managed plan and start learning about how investments, retirement accounts and taxes all work together.

Take a month to get comfortable and then make an informed decision. Don't just jump into something within the next 2 days because it sounds good, let it sit and make an actual plan. Then at the beginning of December start to implement it.
Topic Author
CuzzinOlaf
Posts: 6
Joined: Fri Dec 07, 2012 12:17 pm

Re: Moving 401k

Post by CuzzinOlaf »

I am 48 years old. Thanks for the info.
count damoney wrote: Wed Oct 30, 2024 1:55 pm
CuzzinOlaf wrote: Wed Oct 30, 2024 1:52 pm Hi everyone, sort of new here (haven't posted in a while) and I have a two part question:
  • I have been with my current employer for almost 20 years and have roughly $700k in my 401k with them through Voya. Around the time that things started to get crazy with Covid I "enlisted" in their managed plan that I think charges around 1%. After going back and looking at the history now, I see they really aren't doing too much and it appear they only adjust the percentages of my contributions between funds and I'm thinking about cancelling that. It looks to be a ripoff and from what I'm reading here, that 1% is too high.
  • The other thing I was wondering is if I could move my 401k (or a portion) into something else outside of Voya with less fees and maybe better funds. Not sure if I would need to contribute to that fund if I did it or how this works. I would keep my existing 401k since my employer matches 4% and gives me 3% annually.
What is your age?
retired@50 wrote: Wed Oct 30, 2024 2:00 pm
CuzzinOlaf wrote: Wed Oct 30, 2024 1:52 pm
  • The other thing I was wondering is if I could move my 401k (or a portion) into something else outside of Voya with less fees and maybe better funds. Not sure if I would need to contribute to that fund if I did it or how this works. I would keep my existing 401k since my employer matches 4% and gives me 3% annually.
See link below. It might be possible if your plan allows it, and you're over 59.5 years old.

More details here: https://www.bogleheads.org/wiki/401(k)# ... stribution

Regards,
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retired@50
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Re: Moving 401k

Post by retired@50 »

CuzzinOlaf wrote: Wed Oct 30, 2024 2:07 pm I am 48 years old.
In that case, just try to utilize the plan to the best of your ability by choosing low cost stock and bond index funds. Rebalance once in a great while, and try to avoid looking at the balance frequently if it causes you to take unnecessary action.

I would give up the 1% fee arrangement.

Regards,
"All of us would be better investors if we just made fewer decisions." - Daniel Kahneman
bikefish
Posts: 114
Joined: Wed Jul 10, 2024 10:38 am

Re: Moving 401k

Post by bikefish »

CuzzinOlaf wrote: Wed Oct 30, 2024 2:07 pm I am 48 years old. Thanks for the info.
count damoney wrote: Wed Oct 30, 2024 1:55 pm

What is your age?
retired@50 wrote: Wed Oct 30, 2024 2:00 pm

See link below. It might be possible if your plan allows it, and you're over 59.5 years old.

More details here: https://www.bogleheads.org/wiki/401(k)# ... stribution

Regards,
My company's 401k was provided by Voya and it offered professional services through Financial Engines. I was able to rollover a PORTION of my 401k each year to Fidelity. I cannot recall the percentage but at least it was something. I did this each year to chip away the balance. Only when I turned 60 was I able to move everything to Fidelity. These rollovers were not taxable. I would call Voya and ask them what is allowed with your plan regarding rollovers. I found Voya very helpful.
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retired@50
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Re: Moving 401k

Post by retired@50 »

bikefish wrote: Wed Oct 30, 2024 3:12 pm
My company's 401k was provided by Voya and it offered professional services through Financial Engines. I was able to rollover a PORTION of my 401k each year to Fidelity. I cannot recall the percentage but at least it was something. I did this each year to chip away the balance. Only when I turned 60 was I able to move everything to Fidelity. These rollovers were not taxable. I would call Voya and ask them what is allowed with your plan regarding rollovers. I found Voya very helpful.
Based on the wiki link from my earlier post...
Boglehead wiki wrote: A plan may, however, allow for in-service distributions of the employer matching contributions and of the employee's after-tax 401(k) contributions.
This would fit with your recollection above.

Regards,
"All of us would be better investors if we just made fewer decisions." - Daniel Kahneman
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retiredjg
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Re: Moving 401k

Post by retiredjg »

Only some "sub-accounts" in your 401k are eligible to be moved while still working for the employer. You will have to check with your employer to find out what your plan allows.
  • -money you rolled into the plan

    -employer contributions

    -forfeitures

    -after-tax employee contributions (not the same as Roth contributions)
Your elective deferrals (the $23k you can contribute to traditional and/or Roth 401k this year) cannot be rolled out before age 59.5 and then only if the plan allows it. Some do not.


It is highly unlikely you are getting enough value from your "advisor" to pay 1% for it. If you want guidance on how to invest, get it free here at Bogleheads. :D
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ruralavalon
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Re: Moving 401k

Post by ruralavalon »

Duplicate post deleted.
Last edited by ruralavalon on Wed Oct 30, 2024 6:44 pm, edited 2 times in total.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link: Bogleheads® investment philosophy
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ruralavalon
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Location: Illinois

Re: Moving 401k

Post by ruralavalon »

CuzzinOlaf wrote: Wed Oct 30, 2024 1:52 pm Hi everyone, sort of new here (haven't posted in a while) and I have a two part question:
  • I have been with my current employer for almost 20 years and have roughly $700k in my 401k with them through Voya. Around the time that things started to get crazy with Covid I "enlisted" in their managed plan that I think charges around 1%. After going back and looking at the history now, I see they really aren't doing too much and it appear they only adjust the percentages of my contributions between funds and I'm thinking about cancelling that. It looks to be a ripoff and from what I'm reading here, that 1% is too high.
  • The other thing I was wondering is if I could move my 401k (or a portion) into something else outside of Voya with less fees and maybe better funds. Not sure if I would need to contribute to that fund if I did it or how this works. I would keep my existing 401k since my employer matches 4% and gives me 3% annually.
1% is high.

What is your age?

In general you cannot move a 401k before age 59.5 if still employed with that employer.

TFB blog post, "In-Service Withdrawal: The Law and The Plan Rules", link
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link: Bogleheads® investment philosophy
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