Wiscoman Posted October 1, 2015 Report Share Posted October 1, 2015 Hi there! I am soon 50, and pay into a 401(k). I am not very good at all this investing & saving knowledge. I have a old well performing SEP IRA at vanguard. I was advised to roll it into my current 401(k). I can't figure out why I would want to do it. I get good returns on that SEP. thank you for your thoughts - Mike Link to comment Share on other sites More sharing options...
hr for me Posted October 1, 2015 Report Share Posted October 1, 2015 Are you having to pay any type of account maintenance fees on the IRA? Sometimes 401k plan fees are paid by the employer. And there is the advantage of just having all your money in one place. We had 4 different accounts that in the end we have either rolled into the current 401k OR have in an IRA with the same large recordkeeper in an individual account. Some disadvantages are that you might lose investment options, there might be a distribution fee, etc. You should definitely check into what your distribution options would be out of a rollover account, etc. So there are pros and cons and only you and someone who is looking at your whole portfolio could really make that choice. Link to comment Share on other sites More sharing options...
Belgarath Posted October 1, 2015 Report Share Posted October 1, 2015 Yeah, who advised you and what is their motivation/reasoning for such advice? It may be excellent, perfectly legitimate advice, or it may be someone who wants to generate a commission. Or someone who doesn't know what they are talking about. I make no judgment - just be cautious. hr for me 1 Link to comment Share on other sites More sharing options...
Lou S. Posted October 1, 2015 Report Share Posted October 1, 2015 There could be some good reasons for doing what is suggested, but it doesn't sound like any of those reasons would apply to you based on your original post. If it was me, I'd leave it where it is. disclaimer - this post is not meant to be construed as legal, tax or investment advice. Link to comment Share on other sites More sharing options...
GMK Posted October 1, 2015 Report Share Posted October 1, 2015 Good advice above. The advisor should be able to explain why it would be a good idea to do the rollover to the 401(k) in terms that you can understand. This isn't rocket surgery, and if the reasons are too complex to be explained (or they differ from your objectives), or if the "all in" cost differences cannot be compared using simple arithmetic on a piece of paper, then I'd leave things as they are, especially since you like what you have. It goes under the heading: If you like your retirement plan, you can keep your retirement plan. (disclaimer - I have no credentials as an advisor.) and Go Badgers. Link to comment Share on other sites More sharing options...
QDROphile Posted October 2, 2015 Report Share Posted October 2, 2015 Fabulous coinage: rocket surgery. Now it is in the public domain and I intend to use it. hr for me and K2retire 2 Link to comment Share on other sites More sharing options...
GMK Posted October 2, 2015 Report Share Posted October 2, 2015 I'd gladly take credit, but someone else coined it years ago. It wasn't any of my favorite former presidents, A. Lincoln, W. Rogers, or Y. Berra, but it wasn't me either. Maybe Chris Rock. Use it in good health. Link to comment Share on other sites More sharing options...
spiritrider Posted October 3, 2015 Report Share Posted October 3, 2015 If these are your only IRA assets and your income excludes you from making a Roth IRA contribution, rolling over the SEP IRA to a 401k would enable the backdoor Roth option. For the forum members, do SEP IRAs have the same asset protection that 401ks have under ERISA? Link to comment Share on other sites More sharing options...
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