Need advice on 401K rollover

I've done this a few times.

I'd go with Vanguard, a straight rollover.

Whatever advice Brian1 gives you in this thread is the advice you should follow. Just hold for that.

Can you rollover a 401k into an existing Roth IRA? I know you can roll it over into a traditional and then convert that to a Roth, but can you merge it into an existing account?

Quote from vaultaddict : I've done this a few times. I'd go with Vanguard, a straight rollover. Whatever advice Brian1 gives you in this thread is the advice you should follow. Just hold for that.

Waiting for Brian1............

Quote from Dem Bums : Can you rollover a 401k into an existing Roth IRA? I know you can roll it over into a traditional and then convert that to a Roth, but can you merge it into an existing account?

Yes you can. There is nothing complicated about it; nothing different then going to a Traditional IRA other than owing taxes.

Quote from Tekno9000 : I was laid off from my previous job and I still have my 401K with the previous company. I got another job and am enrolled in their 401K this week. I am looking for better opportunity; hence don’t know how long I’ll be with current company. I need some advice: • Should I roll over in the company 401K account (Paychex)? • Should I go in for fidelity 401K account? • Or any other option. What factors should I consider when rolling over my 401K? Thanks P.S. – I have more than 25 years to retire.

The ability to roll an old 401k into a new 401k is determined by the plan documents of the new 401k. You will need to check with the custodian of the new 401k to see if it is allowed.

Concerning opening your own Fidelity 401k: you cannot do this (unless you own your own company). It is a plan that must be created by a business.

Typically it makes sense to roll a 401k into an IRA to get away from the administrative fees (assuming the company you will have your IRA with doesn't charge fees), so you have full control of your investment options, and don't have to worry about a plan administrator moving your 401k assets to another firm and/or changing your investment options.

Quote from bakins : Yes you can. There is nothing complicated about it; nothing different then going to a Traditional IRA other than owing taxes.

Does it need to be a 2 step process?

401k ->Traditional IRA Rollover
Traditional IRA -> Roth IRA

Quote from Tekno9000 : I was laid off from my previous job and I still have my 401K with the previous company. I got another job and am enrolled in their 401K this week. I am looking for better opportunity; hence don’t know how long I’ll be with current company. I need some advice: • Should I roll over in the company 401K account (Paychex)? • Should I go in for fidelity 401K account? • Or any other option. What factors should I consider when rolling over my 401K? Thanks P.S. – I have more than 25 years to retire.

If it were me, unless you're planning to retire between age 55 and 59 1/2, I'd simply roll it over into a Roth IRA. You'll typically have more options of funds available and your expenses will more than likely be lower. It's not hard to do. Here is the link to the page at Vanguard [vanguard.com] that walks you through how to transfer your 401(k) to a Roth IRA at Vanguard. Just click on the second option called "Roll over a 401(k) plan". This will enable you to do a direct transfer rather than the old 401(k) provider sending you a distribution check, which you do not want to happen.

If you do decide to roll over your old 401(k) to your new employer's 401(k), make sure you do what's called a trustee-to-trustee transfer. This is where the money simply goes from the old custodian directly to the new custodian. What you want to make sure the old custodian doesn't do in this case is send you a distribution check as mentioned before as this will trigger major taxes for you. Also, your new employer's plan may have a waiting period before you can transfer your old 401(k) in, so check into that before you get ahead of yourself.

Quote from Dem Bums : Does it need to be a 2 step process? 401k ->Traditional IRA Rollover Traditional IRA -> Roth IRA

Most do it that way because that is the "normal" route, but there is no reason to if your intention is to convert it anyway. Just know that you will owe taxes on the full amount. If that is too much to handle for one year, then split it between years. I'd suggest to speak to a tax advisor to ensure you are not putting yourself into a high tax bracket.

I think you should look at rolling over the 401k to an account that gives a bonus. I rolled over a small 401k to OptionsHouse. It is ok for an online broker. The fees are rock bottom, but I am still trying to get used to the interface. Here is a website that has the current promo codes http://optionshousepromocode.com/

I would also look at eTrade and TD Ameritrade for deals. These brokers are good places to hold ETF's and index funds.

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