Leaving a job of almost 15 years where I have a pretty good nest egg tucked away in the company 403b plan. The new company offers a matching 401k plan that I intend to take advantage of. Am I able to transfer my 403b money into the 401k plan seamlessly?? Is there anything I need to be aware of before I make that transfer?
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You'll need to see if your plan permits it, if you're fully vested, etc.
Any transfer will need to be directly into the 401k. Lots of rules.
I'd suggest seeing a financial planner. Might be good to do a conversion.
Many variables ... age, XX more years working, etc. Best wishes.
Make sure you execute a DIRECT ROLLOVER of In-kind funds from the 403B to the new 401k. Do not accept a check from your previous employer as that will trigger a taxable event as it will be seen as a distribution of funds.
Best thing to do is see if your new employer's human resources director or head of payroll will contact the previous employer's human resource director or payroll administrator and execute the request for a direct rollover of vested funds on your behalf.
Given that it's a 403B if you have an empty Traditional IRA or Roth IRA you could also transfer to this location IF you don't like the new employer's offerings inside the 401k (i.e. funds with front loads, high expense ratios, etc.).
As Tampa mentioned there are some subtle variables that could maximize your transaction but the vanilla answer to your question is that yes, you should be able to conduct a rollover to the new 401k easily. Communication and following procedures in steps will make sure it's seamless! Congrats on the job change!
You should call company administering your new 401K. Most have employees designated and specialized to help transfer funds. With the amount you have, they want to help you.
These employees will know the requirements. You can gather information for the few situations:
1. Roll 403b funds to new company 401K.
2. Roll 403b funds to new company IRA.
3. Roll some or all of 403b funds to Roth. This discussion is likely better with a financial planner.
I rolled a frozen pension payout, a few years ago, to the company who administers my 401k. I chose to roll it to IRA funds. Mainly due to the ability to select more funds. My 401k fund choices are limited. 401k fund choices are plentiful.
The employee at TRowePrice (my 401K administrator) was very helpful. They outlined how to make transfer correctly. Employee had the ability to allow me to invest in several closed funds. These were only available during initial roll-over. Once invested in closed funds, I can continue to add to these funds.
There are a few nuances, if you pass away, between inherited 401K’s and IRA’s, but this was not the driver in my decision.
Also, verify with your new employer:
My employer allows employees to contibute to 401K immediately. However, they do not start matching 401K contributions until 1 year has passed.
Verify, the match begins immediately, just for your own knowledge.
+1Originally Posted by IMhooked
Do not take your half in the middle ....
Thank you all, your advice and direction is much appreciated.
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