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Rollover old 401k to IRA?

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  • Rollover old 401k to IRA?

    I am coming up on the 2 year mark on retirement. That means the statute of limitations on malpractice  lawsuits will be up. I have the majority of my tax deferred funds in a fidelity 401k with low fees due to the brokerage link option, but there is a .11% administrative fee. I have kept it there up to now due to the greater creditor protection a 401k has over an IRA. When I reach the 2 year mark, should I roll it over to the ira to get rid of the fee? I do have an umbrella policy for non medical liability.

  • #2
    My vote would be to roll over to a Fidelity or Vanguard IRA. Depending on funds, you could have an overall ER lower than the admin fee.

    A better reason to roll over is to have the ability to do Roth conversions in retirement. Depending on your tax bracket, you may find it advantageous to convert up to the top of your current tax bracket. If you overshoot, you can recharacterize part of the conversion back to traditional.

    Doing so will lower your RMDs when the time comes.

    Best,

    -PoF

     

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    • #3




      I am coming up on the 2 year mark on retirement. That means the statute of limitations on malpractice  lawsuits will be up. I have the majority of my tax deferred funds in a fidelity 401k with low fees due to the brokerage link option, but there is a .11% administrative fee. I have kept it there up to now due to the greater creditor protection a 401k has over an IRA. When I reach the 2 year mark, should I roll it over to the ira to get rid of the fee? I do have an umbrella policy for non medical liability.
      Click to expand...


      I'd recommend doing so just for the flexibility it will give you. Most states have IRA protections in place, too - check out this chart.
      Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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      • #4
        Already doing roth conversions in my other, smaller rollover ira. Still several years to go before that one is completely converted. Thanks for the replies.

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