Consolidating 403(b) and 401(k) Accounts
My company recently switched its 401(k) plan from Mercer to Fidelity. As luck would have it, I already have a retirement account with Fidelity, a 403(b) from the University of California, with a remaining balance. I have been intending to roll the balance of the 403(b) into a Rollover IRA. But now that my company's 401(k) is moving to Fidelity, it should be easy to consolidate my 403(b) with my newer 401(k).
If you are in a similar situation with a balance in a 401(k) or 403(b) account from a previous employer, you should transfer the balance of the old account into a new 401(k) from your new employer, or you should roll over the balance from the old plan into a Rollover IRA. Whatever you do, do not let the administrator of your 401(k) cash you out, so you can avoid the early withdrawal fees and penalties, and so you can let your investments continue to grow in your new retirement plan.
