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Mar 31, 2025
1:46
:16
pm
CommodoreCoug
All-American
That's one big reason. Another is that, depending on your employer size
Fees may be lower in an IRA vs. a 401(k). But if you're with a large employer that does their due diligence, fees may actually be lower in the 401(k).
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CommodoreCoug
Previous username
jbcoug
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CommodoreCoug
Joined
Aug 13, 2003
Last login
Apr 2, 2025
Total posts
33,036 (6,166 FO)
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Messages
Author
Time
What’s the reason people advise against rolling an old employer’s 401k into your new employer’s 401k?
TCuz
Coastal Elite
Mar 31, 1:41pm
most IRA's will have significantly more investment options than most 401Ks
fulano
Mar 31, 1:43pm
That's one big reason. Another is that, depending on your employer size
CommodoreCoug
Mar 31, 1:46pm
That makes sense. So I’ll lose flexibility on investment options
TCuz
Mar 31, 1:46pm
This is my biggest reason, for sure.
Eddie
Mar 31, 1:47pm
And often lower fees too
supertux
Mar 31, 3:23pm
The only reason I can think of is if the old 401k is performing better than the
Avery
Mar 31, 1:47pm
The fees could be higher especially if you have moved to a smaller company.
Dangerous
Mar 31, 2:05pm
Sometimes they can’t transfer assets in kind, but liquidate to cash and transfer
seacougar
Mar 31, 2:27pm
Definitely don’t go to IRA if you’re doing backdoor Roth. Not just annoying,
seacougar
Mar 31, 2:28pm
One reason people might want to keep it in a 401k is so they can get a loan
crack
Mar 31, 2:32pm
Congratulations on the new job
Sandy Lyle
Mar 31, 2:43pm
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