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Transitioning over 401k & HSA from old employer to new employer

executivedealer 2,785 491 August 13, 2015 at 05:21 PM
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I've got about 20k with Fidelity that I had through my old employer, it's been about 3 weeks since I resigned and started with my new employer this week whom uses BOA for its 401k. Should I just roll over to the new account? Also, have only about 2k with Optum Bank from old employer and need to move it to CignaBank for my HSA funds. Should I do the same thing with this? I already have an IRA Roth account with Vanguard.

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#2
Consider moving your HSA money to HSA Administrators [healthsavings.com]. They are partnered with Vanguard. They offer some of the lowest fees in the business and a wide range of Vanguard funds to invest in.
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#3
why did you want to rollover from fidelity ?
i think fidelity gives more investment choices with LESS FEES than BOA.
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#4
Quote from Brian1 View Post :
Consider moving your HSA money to HSA Administrators [healthsavings.com]. They are partnered with Vanguard. They offer some of the lowest fees in the business and a wide range of Vanguard funds to invest in.
Why would he want this? (I will answer this)
Why wouldn't just place it in his own IRA himself through Vangaurd?

The only reason to use HSA Administrators would be to give your money to a middle man, this makes no sense to me at all.

And I think you may work for them.
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#5
There are millions of choices... but in my mind you should really only have TWO choices....

(1) Place your money in Vangaurd yourself. Why Vanguard, cause they have the lowest fees in the industry.
(2) Put the money into your new employeers 401K... perhaps you like having all your money in one location, just easier to manage if you play with it (like me).

Personally, I would probably pick (1).
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#6
Quote from PradeepReddy View Post :
why did you want to rollover from fidelity ?
i think fidelity gives more investment choices with LESS FEES than BOA.
I agree with this. You may have access to institutional class shares of some of Fidelity's index funds which are very competitive. It depends on what funds your employer's agreement with Fidelity gives you access to. You may be better off leaving your old 401k in place than even rolling it over into a Vanguard IRA since you would only have access to investor or Admiral class shares at Vanguard. If your old 401k offers only undesirable funds, then you'd want to take your money somewhere better. You'd have to decide if you like what is offered in your new BoA 401k. I would guess that BoA only offers more expensive, actively-managed funds.
Quote from joshuaNH View Post :
Why would he want this? (I will answer this)
Why wouldn't just place it in his own IRA himself through Vangaurd?

The only reason to use HSA Administrators would be to give your money to a middle man, this makes no sense to me at all.

And I think you may work for them.
You can't roll over an HSA directly to Vanguard since "Vanguard does not offer its own health savings account. [vanguard.com]" As you can see at this link, Vanguard recommends HealthSavings Administrators [healthsavings.com], which Brian1 suggested.
Quote from joshuaNH View Post :
There are millions of choices... but in my mind you should really only have TWO choices....

(1) Place your money in Vangaurd yourself. Why Vanguard, cause they have the lowest fees in the industry.
(2) Put the money into your new employeers 401K... perhaps you like having all your money in one location, just easier to manage if you play with it (like me).

Personally, I would probably pick (1).
Vanguard doesn't always have the lowest fees.
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Last edited by dhc014 August 14, 2015 at 08:07 AM
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#7
Quote from joshuaNH View Post :
Why would he want this? (I will answer this)
Why wouldn't just place it in his own IRA himself through Vangaurd?

The only reason to use HSA Administrators would be to give your money to a middle man, this makes no sense to me at all.

And I think you may work for them.
Why would he want to take an immediate 10% tax penalty plus ordinary income taxes on his HSA to transfer it to Vanguard?
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#8
Quote from flatlight View Post :
Why would he want to take an immediate 10% tax penalty plus ordinary income taxes on his HSA to transfer it to Vanguard?
Did not know that Vangaurd does not offer HSA accounts.

Quote from dhc014 View Post :

Vanguard doesn't always have the lowest fees.
So tell me who has lower managment fees that Vanguard... WHO????
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Last edited by joshuaNH August 14, 2015 at 11:56 AM

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#9
Quote from joshuaNH View Post :
So tell me who has lower managment fees that Vanguard... WHO????
As previously described, the OP might have access to lower expense ratios on institutional-class Fidelity Index funds thanks to the pooled resources of his company's 401k.

Many of Charles Schwab's Market-Cap Index ETFs [schwab.com] are cheaper than their comparable ETFs at Vanguard.

Many investments in the Thrift Savings Plan are less expensive to hold than similar funds at Vanguard.
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#10
Quote from dhc014 View Post :
As previously described, the OP might have access to lower expense ratios on institutional-class Fidelity Index funds thanks to the pooled resources of his company's 401k.

Many of Charles Schwab's Market-Cap Index ETFs [schwab.com] are cheaper than their comparable ETFs at Vanguard.

Many investments in the Thrift Savings Plan are less expensive to hold than similar funds at Vanguard.
I doubt what you say about lower expense ratios on institutional-class Fidelity Index funds thanks to the pooled resources of his company's 401k. Chances are he has access to funds that charge a fee and there is still another fee for the 401K provider... at least that is how my 401k works.


And, OK, Charles Schwab lowered their cost a little for selected funds to try and compete with Vanguard. The truth is that Vanguard is lower on average then anyone and sometimes by a lot.

There is a reason why so many people say Vanguard.
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#11
I work for a Fortune 50 company that has index funds managed by State Street Global Advisors and available only to certain qualified retirement plans and governmental plans. Wikipedia says they are #2 behind Vanguard in terms of assets under management.

My company 401k has better expense ratios than Vanguard when comparing similar funds, even the Admiral funds. There is not any load fee and there is a flat administrative fee.

  • Target Retirement 2050 Fund - 0.06 (0.18)
  • S&P 500 Fund - 0.02 (0.17/0.05)
  • Bond Fund (Benchmark: BarCap US Agg Bond) - 0.03 (0.20/0.07)
  • Russell Small Cap Completeness Index Fund (Benchmark: Russell Small Cap Completeness Index) - 0.04 (0.23/0.09)
  • International Index Fund (Benchmark: MSCI AC World Ex USA IMI NR) - 0.08 (0.22/0.14)
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#12
Without putting out too much detail, there is a ESIP plan on top of the 401k plan where they match 75 cents of every dollar. I've listed some details on the ESIP plan below. I know some of the fees with the 401k might be taken off. I'll have to look more into details with this.

• Convenient payroll deductions to fund the shares you intend to purchase
• Opportunity to purchase stock at the opening or closing date of the purchase period, depending on which date
the stock price is lower
• 15% discount on the price of stock when you purchase shares
• No payment of brokerage fees or commissions when stock is purchased

What I need is a better understanding of how to go about in doing these mutual fund allocation and such. Any book anyone could recommend?

What do I need to find out from fidelity to see if it i is worth keeping it/
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#13
Quote from executivedealer View Post :
Without putting out too much detail, there is a ESIP plan on top of the 401k plan where they match 75 cents of every dollar. I've listed some details on the ESIP plan below. I know some of the fees with the 401k might be taken off. I'll have to look more into details with this.

o Convenient payroll deductions to fund the shares you intend to purchase
o Opportunity to purchase stock at the opening or closing date of the purchase period, depending on which date
the stock price is lower
o 15% discount on the price of stock when you purchase shares
o No payment of brokerage fees or commissions when stock is purchased

What I need is a better understanding of how to go about in doing these mutual fund allocation and such. Any book anyone could recommend?

What do I need to find out from fidelity to see if it i is worth keeping it/

You don't really need a book.

There a many rule of thumbs....
1. most brookers (mutual fund managers, finacial advisor, etc....) do not beat the market.
2. the lowest management fees are index funds.

If you are the type to leave it and forget about it, then I recommend a index fund and of course Vanguard is known for the lowest fees. And if someone beats them, it's not by much.
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#14
Quote from executivedealer View Post :
Without putting out too much detail, there is a ESIP plan on top of the 401k plan where they match 75 cents of every dollar. I've listed some details on the ESIP plan below. I know some of the fees with the 401k might be taken off. I'll have to look more into details with this.

o Convenient payroll deductions to fund the shares you intend to purchase
o Opportunity to purchase stock at the opening or closing date of the purchase period, depending on which date
the stock price is lower
o 15% discount on the price of stock when you purchase shares
o No payment of brokerage fees or commissions when stock is purchased

What I need is a better understanding of how to go about in doing these mutual fund allocation and such. Any book anyone could recommend?

What do I need to find out from fidelity to see if it i is worth keeping it/
- Read Bogleheads Guide to Investing
-Find out the expense ratio for the cheapest index funds available through your 401k at Fidelity. Also find out any additiional account fees they may have. If you anticipate having to do a backdoor IRA contribution in the future it may be best to keep the money at Fidelity rather than opening a rollover IRA.
-The ESIP program could be great considering the Employer match. But you do not want too much of your wealth tied up in one company. As soon as the shares are vested, sell them if able so your livelihood is not tied completely to one company.
-Do not listen to joshuaNH. He just regurgitates whatever info he finds interesting or useful and disregards everything else. Take for instance his POV above on Vanguard HSA's.
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