I have a retirement account from a previous job that has $107,000 in it currently. I am no longer at said job so the account is only gaining interest.
Should I leave the money in this account or move it? What type of account is best for me to still easily add funds and for my money to earn the most interest?
Thanks!
Retirement funds: leave in current account or move to something else?
byu/kleallen inpersonalfinance
Posted by kleallen
1 Comment
Your general options for an old 401k are
1. You may be able to leave it where it is, and you just won’t be contributing to it anymore but it will stay invested in what ever option you had picked. But this may incur extra fees, you will want to check on that by checking your plan documents or calling the customer support of the plan administrator. Basically only do this if there is no extra fees and the investment options are very good, meaning low cost index based funds.
2. Your next job may allow you to transfer the funds from your the old 401k to the 401k at your new employer, you will have to check the plan documents or check with the plan administrator at your new job. If they allow for it they can help you make the transfer and those old funds will be reinvested in what every option you choose at your new employer’s 401k.
3. You can pick a brokerage like Fidelity or Schwab and rollover that 401k into an IRA of the same tax status. The two brokers above will be more than happy to assist you with that rollover, just contact which ever one you pick and they will assist. When the funds are transferred you will have to reinvest them, both [Schwab](https://www.schwabassetmanagement.com/products/stir) and%5B Fidelity%5D(https://institutional.fidelity.com/advisors/investment-solutions/defined-contribution/a-comprehensive-target-date-experience) (use “index” tab) offer target date retirement funds that are probably very similar (if not the same) to the investment you are currently holding in your 401k. [Blackrock/ishares](https://www.ishares.com/us/resources/tools/target-date-fund-finder#/choosing-life-path) offer target date retirement funds ETF which can be purchased at any brokerage.
Between 2 and 3 if your new job has good investment choices and allows it do that, if not go with option 3.