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401k vs IRA
Posted by: bazookaman
Date: October 09, 2020 06:59AM
My wife and I have a 401k with our respective companies. We both contribute. Etc etc.

We also both have IRAs that we created as a place to rollover our OLD 401k's as we left past jobs. We changed quite a few bit so at some point we just stopped rolling over into our new job's 401k (if they had one).

Obviously, our original intent was to continue contributing to these. And of course, life happens. So we haven't. It just grows with interest only. So now I was wondering if it makes more sense to roll the amounts over into our respective 401k's that we DO contribute to. Can I even do THAT? Is that even possible?




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Re: 401k vs IRA
Posted by: Lizabeth
Date: October 09, 2020 07:11AM
Why would you want to? I mean if you have your IRA with a broker you aren't limited to ONLY the selections available in the 401K. I treat my 401K as a secondary account and align the investments to work with what I have in my IRA and Roth.

Best thing to do is talk to your financial advisor.
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Re: 401k vs IRA
Posted by: bazookaman
Date: October 09, 2020 07:13AM
Mostly just for simplicity I guess. The IRA is pretty much on set it and forget it. Which is fine. No harm no foul.




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Re: 401k vs IRA
Posted by: Will Collier
Date: October 09, 2020 07:21AM
I would roll any 401k you're no longer contributing to to the IRA. Otherwise you have no control over those dollars (what happens if the 401k management company changes, or if they stop using the funds you're invested in?). Get them under your own name in your own accounts, don't take any chances on either your old employers or the companies they hire to administer those funds screwing something up.
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Re: 401k vs IRA
Posted by: rgG
Date: October 09, 2020 07:23AM
You can roll a 401k into an IRA when you leave, but you can’t put an IRA into an employer 401k.





Roswell, GA (Atlanta suburb)
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Re: 401k vs IRA
Posted by: neophyte
Date: October 09, 2020 08:35AM
What Will posted.

Sometimes a 401k allows you to borrow against it, so it can be a source for a loan if you need one. There are terms that must be met for the loan, a payback time limit, and interest requirements. But you are paying that interest into the 401k, so in the end, that interest is yours.
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Re: 401k vs IRA
Posted by: Ombligo
Date: October 09, 2020 09:53AM
in short rgG gave you the answer - no you cannot move an IRA into a 401k.

but like others have said - you wouldn't want too.



“No persons are more frequently wrong, than those who will not admit they are wrong.”
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Growing older is mandatory. Growing up is optional.
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Re: 401k vs IRA
Posted by: NewtonMP2100
Date: October 09, 2020 09:56AM
......sometimes 401k have funds that are no longer open or reduced minimums to get into mutual funds......if it is a great performing fund, you may want to keep it in the old 401K.....rather than transfer to IRA......



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Re: 401k vs IRA
Posted by: bazookaman
Date: October 09, 2020 10:22AM
Quote
NewtonMP2100
......sometimes 401k have funds that are no longer open or reduced minimums to get into mutual funds......if it is a great performing fund, you may want to keep it in the old 401K.....rather than transfer to IRA......

Sorry if I wasn't clear. These are all old 401k accounts from old jobs that have already been rolled into one IRA. We've both had one for years. Neither of us contributes. It just earns interest based on the existing amount.




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Which I think we all know is the International uniform for the last guy you’ll ever see.



Edited 1 time(s). Last edit at 10/09/2020 10:22AM by bazookaman.
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Re: 401k vs IRA
Posted by: neophyte
Date: October 09, 2020 10:27AM
Quote
rgG
You can roll a 401k into an IRA when you leave, but you can’t put an IRA into an employer 401k.

In some cases, you may be able to rollover an IRA into a 401k. It depends on whether the the 401k plan and its administrator allow it. You have to check with them.

I did this so I could borrow against it to fund the purchase of my business. That was in 2013, and I don't know if the rules have changed since then.
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Re: 401k vs IRA
Posted by: bobinmurphy
Date: October 09, 2020 11:30AM
Quote
rgG
You can roll a 401k into an IRA when you leave, but you can’t put an IRA into an employer 401k.]/quote

Some (all?) employer 401K plans have a provision that after a certain age (52 or 55) you're allowed to sweep the funds at no penalty into an IRA outside of the employer's managed 401K plan without terminating your participation in the 401K. My employer used Fidelity to manage their 401K plan and my Financial Advisor at Fidelity did this for me which gave me access to a broader range of investments that worked out handsomely. I continued to participate in my employer's 401K plan until I retired at which time I rolled those funds it into my IRA and used them to set up my own monthly pension plan.
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Re: 401k vs IRA
Posted by: macphanatic
Date: October 09, 2020 12:00PM
Quote
neophyte
Quote
rgG
You can roll a 401k into an IRA when you leave, but you can’t put an IRA into an employer 401k.

In some cases, you may be able to rollover an IRA into a 401k. It depends on whether the the 401k plan and its administrator allow it. You have to check with them.

I did this so I could borrow against it to fund the purchase of my business. That was in 2013, and I don't know if the rules have changed since then.

In some cases you can. In at least some states, 401k is protected in the event of a lawsuit. IRA's typically aren't protected. So, if your employer/401k program allows you to bring in other retirement investments it can be smart to move them. This is a case where speaking with a financial planner in your state makes a lot of sense.
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Re: 401k vs IRA
Posted by: ztirffritz
Date: October 09, 2020 01:10PM
I've had similar situations with changing jobs. I've always rolled my 401ks into my IRA when I left a job. Every new job the 401k has started out at rock bottom.



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Re: 401k vs IRA
Posted by: GGD
Date: October 09, 2020 01:44PM
Quote
bazookaman
Sorry if I wasn't clear. These are all old 401k accounts from old jobs that have already been rolled into one IRA. We've both had one for years. Neither of us contributes. It just earns interest based on the existing amount.

You say "just earns interest". Is the IRA entirely in cash/Money Market? The 401k that it came from was likely more diversified. I don't know how many years you have until retirement, but if you want those IRAs to grow significantly they should be more diversified, especially since interest rates are essentially zero.
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Re: 401k vs IRA
Posted by: bazookaman
Date: October 09, 2020 01:55PM
Quote
GGD
Quote
bazookaman
Sorry if I wasn't clear. These are all old 401k accounts from old jobs that have already been rolled into one IRA. We've both had one for years. Neither of us contributes. It just earns interest based on the existing amount.

You say "just earns interest". Is the IRA entirely in cash/Money Market? The 401k that it came from was likely more diversified. I don't know how many years you have until retirement, but if you want those IRAs to grow significantly they should be more diversified, especially since interest rates are essentially zero.

It's in a money market. What I meant was that we do not contribute to it. So the only earnings are from interest.




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There’s a guy wearing overalls with no shirt.
Which I think we all know is the International uniform for the last guy you’ll ever see.
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Re: 401k vs IRA
Posted by: Ombligo
Date: October 09, 2020 02:45PM
No offense but you are losing money with that strategy. The inflation rate will be more than you are earning in interest. A retirement account needs to grow aggressively in order to have enough for when you retire and can't add to it anymore.



“No persons are more frequently wrong, than those who will not admit they are wrong.”
-- François de La Rochefoucauld

Growing older is mandatory. Growing up is optional.
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Re: 401k vs IRA
Posted by: bazookaman
Date: October 09, 2020 03:09PM





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There’s a guy wearing overalls with no shirt.
Which I think we all know is the International uniform for the last guy you’ll ever see.
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Re: 401k vs IRA
Posted by: wowzer
Date: October 09, 2020 03:58PM
I find that putting my retirement into the S&P500 index fund (usually with very low load) worked great. All the major gains in the last 20-30 years have come from large cap and the largest 500 usually does great. Just no more enron's....



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Re: 401k vs IRA
Posted by: Will Collier
Date: October 09, 2020 06:12PM
Quote
bazookaman
Quote
NewtonMP2100
......sometimes 401k have funds that are no longer open or reduced minimums to get into mutual funds......if it is a great performing fund, you may want to keep it in the old 401K.....rather than transfer to IRA......

Sorry if I wasn't clear. These are all old 401k accounts from old jobs that have already been rolled into one IRA. We've both had one for years. Neither of us contributes. It just earns interest based on the existing amount.

Ah, okay. I thought from the OP that you had a bunch of old 401k accounts from previous jobs hanging around out there in the financial aether.

In that case I really would suggest finding a fee-only financial guy/gal to make investment recommendations, but other than that, let your own fiscal flag fly...
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Re: 401k vs IRA
Posted by: Bill in NC
Date: October 10, 2020 07:08AM
Quote
macphanatic
Quote
neophyte
Quote
rgG
You can roll a 401k into an IRA when you leave, but you can’t put an IRA into an employer 401k.

In some cases, you may be able to rollover an IRA into a 401k. It depends on whether the the 401k plan and its administrator allow it. You have to check with them.

I did this so I could borrow against it to fund the purchase of my business. That was in 2013, and I don't know if the rules have changed since then.

In some cases you can. In at least some states, 401k is protected in the event of a lawsuit. IRA's typically aren't protected. So, if your employer/401k program allows you to bring in other retirement investments it can be smart to move them. This is a case where speaking with a financial planner in your state makes a lot of sense.

Under federal law an IRA of any amount that is solely a rollover from a 401k plan to an IRA is protected, so it is best to create a new IRA to receive any such rollover:

[www.investopedia.com]

Otherwise there's a hard dollar limit (currently ~$1.36 million) periodically adjusted for inflation on the total combined value of all traditional IRA and Roth IRA accounts.

State laws vary...here any IRA (including inherited) of any amount are fully protected from creditors.



Edited 3 time(s). Last edit at 10/10/2020 07:13AM by Bill in NC.
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