Hello, I am switching employers. I contacted my current companies 401k plan provider to inquire what will happen when I change employers. They advised me the entire account would migrate to Merrill Lynch but I do have the option to roll it over. Initially I wanted to leave it where it was because the Vanguard Wellington Fund Admiral Shares was going to pay out LT & ST Cap Gains as well as Dividends in December (and I wanted to get that pay out). But if they end up migrating me to Merrill Lynch who has really high fees/costs (from what I have heard), should I just roll it over to Vanguard immediately instead? If I was to roll it over into the Wellington Fund at Vanguard would I still get the LT & ST Cap Gains or would it be reduced?
Thanks
Merrill Lynch taking over 401k (Roll it Over?)
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Re: Merrill Lynch taking over 401k (Roll it Over?)
Can you do an in-kind rollover?
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Re: Merrill Lynch taking over 401k (Roll it Over?)
Gains and income are already priced into the NAV. When it's paid out, the NAV drops by the amount that is paid out.
For example,
Rolling before: 100.000sh at $10.00 = $1000.
Rolling after $1 payout and reinvestment: 111.111sh at $9.00 = $1000
Either way, you'll have the same amount. No money is lost. Roll at your convenience and to where you prefer it.
For example,
Rolling before: 100.000sh at $10.00 = $1000.
Rolling after $1 payout and reinvestment: 111.111sh at $9.00 = $1000
Either way, you'll have the same amount. No money is lost. Roll at your convenience and to where you prefer it.
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Re: Merrill Lynch taking over 401k (Roll it Over?)
Excellent, you are correct, Thanks Jacob!