Retirement 30-Day Update

Well, you have three choices with your 401k when you change companies:

1. Leave it in your old employer’s 401k

2. Take a distribution to yourself

3. Move it to another retirement account like an IRA

I always do #3, but let’s get to why I did this time first:

1. The plan I had at my former job was “ok”, but the fees were simply too high — both administrative and for the funds they offered. They also didn’t offer my top choices in funds.

2. If you take out the money to yourself there are tons of tax consequences and you end up paying a boatload of money back to the government.

3. I rolled the money over to my Vanguard IRA. I can manage it there with my other retirement money, get the funds I want, and pay very low fees. So it was a no-brainer for me.

The next question is where will I invest the money. I have different objectives (more income now than just growth) than I’ve had in the past, and I may write a post on my thinking and let ESI Money readers help me decide what to do with it. 🙂


Originally posted at

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