My 401k after my company has been sold

Discussion in 'Financial Planning' started by Treg, Jun 1, 2006.

  1. Treg

    Treg Guest

    Im hoping for a little insight on this issue. I have 40,000 in a
    fidelity 401k account with my company. they have been bought by another
    company and i have a new 401k with about 10k in a amerprise account. I
    have no issues with leaving it in the Fidelity account, but would like
    to move it to an IRA in my scottrade brokerage account. Being a rookie
    at the IRA part, is this the best idea? Im 35 and put in about 6 grand
    a year to my new 401k if that matters.
     
    Treg, Jun 1, 2006
    #1
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  2. "Treg" <> writes:

    > Im hoping for a little insight on this issue. I have 40,000 in a
    > fidelity 401k account with my company. they have been bought by another
    > company and i have a new 401k with about 10k in a amerprise account. I
    > have no issues with leaving it in the Fidelity account, but would like
    > to move it to an IRA


    Can you even do that? What has the new company said about it? Is the
    new company going to merge the old and new 401(k) plans into the new
    plan? Also, depending on the details of the buyout, the IRS's "same
    desk" rule may apply and prohibit you from rolling the Fidelity 401(k)
    to an IRA until you quit/leave your current job.

    --
    Rich Carreiro
     
    Rich Carreiro, Jun 1, 2006
    #2
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  3. On Thu, 1 Jun 2006 10:39:39 -0500, "Treg" <> wrote:

    > I
    >have no issues with leaving it in the Fidelity account, but would like
    >to move it to an IRA in my scottrade brokerage account.


    Check with your HR people and Fidelity to see if a rollover to an IRA
    is possible under these circumstances.

    Meanwhile, most of the Fidelity 401ks I have seen had pretty good
    investments (low cost, good diversity possible, etc.) and retained the
    401k advantages (possible access at 55, borrowing, etc.) What is it
    about a Scottrade IRA that appeals to you?

    -HW "Skip" Weldon
    Columbia, SC
     
    HW \Skip\ Weldon, Jun 1, 2006
    #3
  4. Rich Carreiro <> writes:

    > "Treg" <> writes:
    >
    > > Im hoping for a little insight on this issue. I have 40,000 in a
    > > fidelity 401k account with my company. they have been bought by another
    > > company and i have a new 401k with about 10k in a amerprise account. I
    > > have no issues with leaving it in the Fidelity account, but would like
    > > to move it to an IRA

    >
    > Can you even do that? What has the new company said about it? Is the
    > new company going to merge the old and new 401(k) plans into the new
    > plan? Also, depending on the details of the buyout, the IRS's "same
    > desk" rule may apply and prohibit you from rolling the Fidelity 401(k)
    > to an IRA until you quit/leave your current job.


    When the company I worked for was acquired about 5 years ago, our old
    401(k) plan was terminated, and we *had* to transfer the money
    elsewhere (either the new company's 401(k), or an IRA) within a
    certain period of time. OP should definitely check the exact
    requirements and procedures for his own situation.

    Possible reasons for choosing the IRA instead of the new employer's
    401(k) plan (assuming it is allowed in this situation) are if the new
    plan has a limited choice of good investments, or to allow a Roth
    conversion on the money using other savings to pay the taxes.

    -Sandra
     
    Sandra Loosemore, Jun 1, 2006
    #4
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