juliana_san t1_j2eg2ee wrote on December 31, 2022 at 5:35 PM

I have questions about retirement plans and 401k

32/USA

In march my company will start matching for 401k 100% up to 4% of contributions so I plan on maxing that out to 4% as soon as it kicks in. I have a 401k from my previous job that I was contributing a high amount to but have not touched since I left the company. I also have a managed IRA that I inherited from my father when he passed that I also have not touched, pretty much ever, because I was young and had no idea what to do with it.

So I essentially have 3 separate retirement accounts right now. I also have a decent chunk of stock from my previous job that was a mix of EPP and RSUs in yet another account.

Outside of maximizing my company's match does it matter what I do with the other two retirement accounts? Should I be contributing to them as well does it not matter which one I end up putting money into?

Also since all 4 are market-based I'm wondering if maybe I should choose something else to invest into that might be more stable? I think maybe now is a good time to diversify.

*Edit* Ok so it looks like based on the flowchart I should be doing 15% towards retirement. I don't know if I would be considered behind on this - how would I figure that out? I just haven't made a lot of money (and still don't but hoping to change that). My guess is I can just utilize my current employer's plan and let the others do their thing. Are the maximum yearly contributions total or per account?

dequeued t1_j2f3w5k wrote on December 31, 2022 at 8:18 PM

> Outside of maximizing my company's match does it matter what I do with the other two retirement accounts? Should I be contributing to them as well does it not matter which one I end up putting money into?

If your current 401(k) has good funds then you could just roll your old 401(k) into your current 401(k). That link will also help you pick funds in your 401(k).

What you should be doing with the inherited IRA depends on various factors, but I'd start by reading through this article.

> I don't know if I would be considered behind on this - how would I figure that out?

The Fidelity guideline is a good baseline for whether you're behind or not. If you're a bit behind, it wouldn't hurt to try to save 20% instead of 15% until you're caught up.

> Are the maximum yearly contributions total or per account?

Total.

meamemg t1_j2f4ggl wrote on December 31, 2022 at 8:22 PM

Rule of thumb is 1x income in retirement accounts by 30 and 2x by 35.

You can’t contribute to a former employer 401k or an inherited IRA, so those aren’t options.

Inherited IRAs require distributions from them. You should check with the manager and make sure those are being handled.

Take a look at the article on “rollovers” in the wiki in the sidebar for what to do with the old 401k.

WynonaRide-Her t1_j2fg14x wrote on December 31, 2022 at 9:47 PM

Make sure all cash in any account (number of ACCOUNTS doesn’t matter) is INVESTED. You are correct 15% for 401k is great. Roth is the best if you are not over the annual income.