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?