Post by heliocentric on Mar 29, 2015 9:37:05 GMT -5
I work for a privately held company. As part of our retirement plan we are given a portion of company stock each year. After 15 years of service we can cash out up to 50% and move it into another retirement account. I now have 15 years in and plan to cash out the full 50%.
I can move it into the company 401K at Fidelity (in which I'm also invested) or to another company. My Roth and Traditional IRAs are at Vanguard, so that's where I'd put it if I go that route. I assume this would go into my traditional IRA, is that correct?
Is there any benefit to one over the other? I believe Vanguard's fees are lower (not confirmed) and I might have more investment options there. Is there anything else to consider? Not just about companies, but about 401K v IRA.
ETA: I won't actually be "cashing in" as in getting cash. I will be rolling the money over from my employer account into another retirement account in case that wasn't clear. I wasn't sure what other term to use.
Post by delawarejen on Mar 29, 2015 10:06:27 GMT -5
I'd move it to Vanguard, just because you'll have more choices in your IRA accounts. You can call Vanguard for the exact address and account number to give to your current custodian, and your current custodian would need to know if you're putting it in a Traditional or a Roth so they can send you correct right tax forms for 2015. (If you put it in the Roth you'll owe tax, if you put it in the Traditional you won't.)