Roth 401k rollover?

Roth 401k rollover?

One of the great advantages, at least for me is that by contributing to my Roth IRA at work I know that some day when I leave the company I can roll it over to a Roth IRA which is a much friendlier vehicle for someone who may be thinking about retiring early. Well I have only been contributing to my Roth 401k for a year, but I am interviewing pretty hardcore lately and it’s likely that I’ll be leaving my current company in the next month or so.

So me being a personal finance geek, the first thing I start doing is checking up on the logistics of doing this rollover into my existing brokerage Scottrade. Well as it turns out Scottrade does not offer an option to rollover your Roth 401k at this time.So then I decided well I’ve always been wanting to try out FreeTrade – mainly because they offer dividend reimbursement and Scottrade does not, but they also do not offer rollovers from Roth 401ks.

Now it’s not the end of the world because my existing 401k provider has some good investment options and the fees are very reasonable, but I am not sure the logistics on keeping the money with them as if I’m not an employee there may be some sort of premium charged to me to keep my account with them to cover maintenance fees. So maybe this Roth 401k isn’t so great if no one deals with rolling them over right now because they are so new.

I really don’t know if I want to go outside of Scottrade or FirstTrade as based on my initial research a year ago those two were the best. Anyway does anyone else know of a brokerage that “doesn’t suck” and allows Roth 401k rollovers?

  • EMF

    I’d recommend obtaining and reading the Summary Plan Description (SPD) for the Roth 401k plan. Since you have more than $5000 in your account, the plan _might_ allow you to leave your balance with them, at least until you can come up with a better parking spot. I’ve never heard of a plan that charged extra for leaving your funds after leaving employment, but the SPD should tell you.

  • My Financial Journey

    Thanks for the advice – I’ll ask for that after I officially quit 😉

  • Ed

    It seems that your Roth Ira is housed as one of your retirement vehicles. I dont always see brokerage as the best way to go. Sometimes I like brokerage, but sometimes I like Mutual funds as well.

    If you do want to trade BKG, every company offers the same thing. Some companies may give you perks but like anything in life, there is a pro and con.

    If you consider rolling it over into MFs – theres def a lot of options!

  • Jimmy

    Brokerages are the way to go. Don’t listen to Ed. Mutual funds are HORRIBLE and if you’re a finance geek then you should know how little transparency they have. Anyway, I’d throw it into some small cap company stock. You’re young… let it ride!

  • My Financial Journey

    Well eventually I will roll it over into a brokerage…..only problem is right now no good brokerage offers Roth 401k rollovers at this point so I will have to let it ride with my previous company’s 401k administrator until someone like Scottrade, FirstTrade, etc start offering rollovers for Roth 401k accounts

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