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401k Old vs New

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  • 401k Old vs New

    I recently joined a small private practice group where the 401k through MassMutual has an index fund with a 0.12% total annual fund operating expense. However, there is a 0.75% "administrative fee" bringing the total to 0.87%. My previous employer offered a 403b through TIAA-CREF with Vanguard index funds with an expense of 0.04%. Is it possible to transfer money from a current employer's 401k to a previous employer's 403b? If it is possible, I would obviously have to do this on a recurring basis. The funds are similar in make-up.

  • #2
     

    No.

     
    Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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    • #3
      nope.

      only if you go back to work there.

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      • #4
        Ok, thanks everyone!

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        • #5




          I recently joined a small private practice group where the 401k through MassMutual has an index fund with a 0.12% total annual fund operating expense. However, there is a 0.75% “administrative fee” bringing the total to 0.87%. My previous employer offered a 403b through TIAA-CREF with Vanguard index funds with an expense of 0.04%. Is it possible to transfer money from a current employer’s 401k to a previous employer’s 403b? If it is possible, I would obviously have to do this on a recurring basis. The funds are similar in make-up.
          Click to expand...


          Did you join as a partner, or as an employee?  This sounds to me like excessive fees in your 401k plan.  You can always have a discussion with the owners/partners about upgrading their 401k to eliminate most of the asset-based fees, and to include all of the best index funds.  This will not cost the group more (in fact, eliminating all of the asset-based fees will help save your group hundreds of thousands of dollars, and maybe even millions, depending on the level of contribution).  Most of these fees are paid by the owners/partners anyway, so there is no reason to accept such a high cost plan with low quality investments.

          Start by asking for a 408b2 disclosure that shows all fees in the plan, and compare the fees to those charged by a fixed/flat fee provider using this calculator:

          retirementplanhub.com/retirement-plan-cost-calculator/

          I doubt anyone would want to keep such a plan especially when there are other, significantly lower cost options available.
          Kon Litovsky, Principal, Litovsky Asset Management | [email protected] | 401k and Cash Balance plans for solo and group practices, fixed/flat fee, no AUM fees

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