My 401k after my company has been sold


T

Treg

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.
 
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R

Rich Carreiro

Treg said:
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.
 
H

HW \Skip\ Weldon

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
 
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S

Sandra Loosemore

Rich Carreiro said:
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
 

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