Retirement Help

[Deleted]

I've mentioned before that I am extremely far behind in saving for retirement. I'm 46 and currently only have about $30K, the bulk of which is in the 401K of my current employer at Fidelity. I also have a small Rollover IRA also with Fidelity. Then I have one more small, less than $5K 401K with an old employer. 

I am planning on maxing out my 401K contribution when I start my job and then the employer match of 5% begins year 2. 

Would my best bet be to roll over all of my 401K money in to IRAs? I've been happy with Fidelity, but I'm not opposed to moving if that is a better option. Should I wait and see who my new employer uses? 

Also, I'm meeting with a Financial Planner since I figured that now is as good a time as any to get my financial ducks in a row, anything specific I should ask about when meeting with him? I've been working hard to get rid of our debt but have slacked in planning for our financial future whether that ends up being together or separate still remains to be seen. 

[midwestmama]

Since you are meeting with a Financial Planner, you could also get their advice on whether to roll over your current 401k into an IRA after you leave your current company. (Maybe you could roll it over to the existing Fidelity IRA you have). I have rolled over past 401ks into my new account when I change companies, but for me, I like to have one account and manage one balance. DH rolled his Fidelity 401k into a Fidelity IRA a few years ago when he changed employers because he liked the investments Fidelity offered.

When I the 401k plan administrator at a company I worked at many years ago, I know that we charged higher fees to former employees who kept their 401k account open, so maybe something to check into/consider as you think about what to do with old accounts.

I would suggest asking the FP about other investment accounts/options. Maybe a Roth IRA?

[gt7301b]

The one reason I would leave old money in a 401k so that you can do a backdoor Roth if you are income ineligible for a Roth. Money in an IRA is taxed if you go the conversion for a Roth, however, money in a 401k is not. Fidelity is a one of the companies frequently recommended for retirement accounts due to their low fees, so I would just stick with them. That being said if you have under $5K employers can charge more fees and may try and get you to move the money.

www.irafinancialgroup.com/learn-more/self-directed-ira/roth-ira/can-i-still-do-a-backdoor-roth-ira-in-2022/

[mlkgls]

I personally would wait to see what your new retirement fund options are so you can compare all available options, but if the funds are decent it’s probably easier to roll everything into one account for simplicity. Hopefully the financial planner can help you evaluate them. 

The good news is you still have plenty of time to focus on retirement and catch up! I don’t know how much wiggle room you have in your budget, but you can also add another $6k to a Roth now and the 401k max limit for catch up contributions will start the year you turn 50. Setting up a Roth at Fidelity is super easy and you can still contribute for 2021 until April 15th. 

[definitelyO]

yes - talk with your advisor to see what is best in your situation. One account is much more simple... that said... I rolled over a 401(k) to an IRA with Schwab when I left my old job ~15 years ago. My current 401k is with Fidelity.