Sheriff Cad
scientia potentia est
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You can buy and sell all you want within your retirement accounts. You can roll over multiple 401k's into the same IRA and combine them that way.
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Investing General Discussion
- Thread starter Furious
- Start date
Sludig
Potato del Grande
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Like I could have a fidelity account, separate from my Roth ira t that could old keep them as 401k? Would be nice when retired to have all consolidated, but right now I'll still run into the Issue every 8 years or so when company changes hands that their employee 401k deduction has to go into whatever company they are using, that's why I have 4 as is.
Fogel
Mr. Poopybutthole
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You can buy and sell in a retirement account all you want. You only face any potential taxes or penalties if you try to pull money out.
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Sheriff Cad
scientia potentia est
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- 85,281
You have to keep your current company 401k with that company's provider, but past employers you can roll all of those into one IRA. And you can buy and sell freely in an IRA, you don't pay taxes (or accumulate taxable events) until you withdraw from the account.
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Jysin
Bronze Baronet of the Realm
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I do remember that there are some legal protections in a 401k that do not exist in an IRA. Something to be mindful of!
401k has unlimited bankruptcy protection and unlimited creditor protection. (Nationwide, no exceptions)
IRA has a bankruptcy limit (though it is quite high), and more importantly, IRAs are NOT protected from creditors. (Variable by state)
401k has unlimited bankruptcy protection and unlimited creditor protection. (Nationwide, no exceptions)
IRA has a bankruptcy limit (though it is quite high), and more importantly, IRAs are NOT protected from creditors. (Variable by state)
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Sheriff Cad
scientia potentia est
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I mean we've seen how people have started posting betting market stuff instead of polls, even our generation apparently believes it.
Haus
I am Big Balls!
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No penalties. I did it in the past, and since I just changed employers I'm about to do it again. There's a tiny bit of hassle, but if you're combining 401ks into the one at your current employer the the 401k provider usually offers assistance. (At my new gig they literally call it "Rollover concierge" )
Synj
Dystopian Dreamer
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AI slop options below. Just talk to ChatGPT and it can answer all this stuff for you.
| Option | What happens | Main advantage | Main drawback |
| 1. Consolidate into a Rollover IRA | Roll all old 401(k)s into one traditional/rollover IRA | Huge investment selection, easy management, often low fees | Can complicate Backdoor Roth; loses 401(k)-specific protections/features such as Rule of 55 |
| 2. Roll everything into current employers 401(k) | Combine old plans into the active 401(k), if the plan accepts rollovers | One account; retains 401(k) treatment; potentially useful for Rule of 55; preserves clean Backdoor Roth | Limited to current plans investments and fees |
| 3. Leave each 401(k) where it is | Do nothing | Keeps good institutional funds/fees and existing plan features | Multiple accounts to track and rebalance |
| 4. Mix and match | Keep an especially good old 401(k), roll others into current 401(k) or IRA | Lets you preserve particularly attractive funds/features | More accounts and complexity |
| 5. Roll old 401(k)s into IRA, then later move IRA into a 401(k) | Consolidate now in IRA and potentially reverse-rollover later | Flexibility | New 401(k) must permit incoming IRA rollovers |
| 6. Roth conversion | Move pretax 401(k) money to a Roth IRA | Future qualified growth/withdrawals can be tax-free | Conversion is taxable income in the year performed |
| 7. Cash it out | Take the money personally | Immediate access to cash | Usually the worst retirement option: income taxes + potentially a 10% early-distribution penalty |