Merrill Lynch taking over 401k (Roll it Over?)

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Star*Bucks
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Location: California

Merrill Lynch taking over 401k (Roll it Over?)

Post by Star*Bucks »

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

slowtraveler
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Re: Merrill Lynch taking over 401k (Roll it Over?)

Post by slowtraveler »

Can you do an in-kind rollover?

Star*Bucks
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Location: California

Re: Merrill Lynch taking over 401k (Roll it Over?)

Post by Star*Bucks »

Felipe wrote:
Wed Aug 30, 2017 3:55 pm
Can you do an in-kind rollover?
I will ask... I was unaware this even existed.

jacob
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Re: Merrill Lynch taking over 401k (Roll it Over?)

Post by jacob »

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.

Star*Bucks
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Joined: Wed Mar 05, 2014 10:27 am
Location: California

Re: Merrill Lynch taking over 401k (Roll it Over?)

Post by Star*Bucks »

Excellent, you are correct, Thanks Jacob!

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