[Samantha]

New job, new options. Old job invested 100% with Vanguard total stock market fund.

Do I transfer that balance to the new job? Leave them separate? 40 year old mom of 2

I’m currently facing a decision regarding my Vanguard fund. I’ve recently started a new job, and I’m unsure whether I should transfer my existing Vanguard retirement account into my new employer’s retirement plan or keep it separate.

What are the pros and cons of each option? For those who have been in a similar situation, what did you do and why? Are there any tax implications or other factors I should be aware of?

I’m particularly interested in the experiences of others who have managed funds across multiple accounts or consolidated them.

Any insights or advice would be greatly appreciated!

[Rashad]

I would keep the old account separate. Transfer it to a Rollover IRA with Vanguard.

In this account, I’d do 100% in 500 Index or Total Stock Market Index.
Good luck!

[Goska]

Depending on your income, doing rollover IRA might create complications for backdoor Roth IRA, if you wanted to do it now or in the future.

Since your new employer offers Vanguard Total Stock Market Index, I would move it there to keep it all together.

[Cameron]

If expense ratios are the same or less I’d move it over unless you like the provider.

I kept my old 401k cause it was with Fidelity where I have everything else, and my new job is with a different provider.

[Bill]

VG Total Stock or 500 Index. Whether to transfer old 401K should consider whether fees at old place are higher than new place.

If not a substantial difference, consider transferring for the sake of simplicity.

[Prasad]

Find fees for both accounts. Check if your new employer plan allows incoming roll overs from old 401k. Sometimes, 401k plans have even lower cost funds than VTI.

Don’t roll into TIRA if 401k has low cost, since if you keep all in 401k, it will help you do backdoor Roth IRA.

[Jake]

I like to exit a 401k as soon as possible to avoid the plan fees. I’d roll to an IRA and start fresh with your new 401k.

[Michael]

Depends on the expense ratios. I would rollover over to Vanguard if the expense ratio is lower…

[Jule]

Roll to the new 401k to simplify and invest in the Vanguard Total Stock Market.

[Author]

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