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401k/403b One active and one not.

Posted on 5/6/23 at 12:54 pm
Posted by LSU alum wannabe
Katy, TX
Member since Jan 2004
27591 posts
Posted on 5/6/23 at 12:54 pm
Recently changed jobs. Basically different hospital systems. Both plans are with fidelity now.

One is active and one is not.

What would you do with the inactive one?

ONLY thing I am smart enough to know is to not cash out the inactive one.

My knee jerk simple answer is to just roll them together and go about life. What’s the boards answer?
Posted by Hopeful Doc
Member since Sep 2010
15388 posts
Posted on 5/6/23 at 1:45 pm to
quote:

knee jerk simple answer is to just roll them together and go about life. What’s the boards answer?



This is generally the best option.
A few caveats:
1) if Fees are higher in the “active” one than the “inactive” one, maybe leave it in the old one
2) if funds are traditional and you have a traditional IRA, maybe roll them into the IRA
3) If funds are Roth and you have a Roth IRA, maybe roll them into the Roth IRA
4) if funds are traditional and you have a Roth IRA and particularly high fees in both the old and new 40xx, consider taking 5-10 online surveys to make a tiny bit of money, start a business/get an EIN for this, start an Individual 401k, roll funds there
Posted by LSUFanHouston
NOLA
Member since Jul 2009
40255 posts
Posted on 5/6/23 at 3:56 pm to
If you want to actively manage it, a rollover to an ira will give you more options.
Posted by LSU alum wannabe
Katy, TX
Member since Jan 2004
27591 posts
Posted on 5/6/23 at 4:51 pm to
quote:

If you want to actively manage it, a rollover to an ira will give you more options.



These are all pre tax funds. I already have a small Roth that I have neglected.

A. Roths have a limit of what can be added per year? When we opened it way back, it was like 6,000 bucks I think.

B. I know Roths are post tax.

Realizing I am getting older and it is time to stop neglecting them. I’ve always contributed. Never dumb enough to stop putting in or god forbid to withdraw or borrow against.

Money management and investing is something many of you guys enjoy. I do not. I’d probably be better off gambling on NFL games than assembling and moving a real portfolio. I know more about football. I would be a ponzu scheme victim. Lol
This post was edited on 5/6/23 at 4:52 pm
Posted by Hopeful Doc
Member since Sep 2010
15388 posts
Posted on 5/6/23 at 8:50 pm to
quote:

These are all pre tax funds. I already have a small Roth that I have neglected.



Just leave it alone or roll the old one into the new, then.
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