This is what I know about 401k and IRA accounts:
401k accounts are employer-sponsored plans, which means that you can only participate in a 401k plan if your employer offers one. IRAs, on the other hand, can be opened and funded by anyone who meets certain income requirements.
I currently have a 401k account & my current employer is matching my contribution. My current 401K account is with Fidelity & it is Five year old.
I am changing jobs and my new employer uses Vanguard to manage 401K accounts.
I did read few articles about moving 401k to IRA
I have following questions:
- Can I continue to use both Fidelity (keep running my current 401k account) and Vanguard 401k accounts ? Would my Fidelity account attract any additional fees?
- Considering current market situation (most index crashed by 30% from the peak & volatility), it is wise to move funds between Fidelity account to Vanguard account ? So lets say my account has $30,000 and I move the fund to IRA account or Vanguard 401K account, will I get the same value of $30,000? and lets say in next 1 year market gains 20% would I make same money by keeping money in Fidelity's 401k account or if I move it to an IRA account ?