401k contributions from a grad student

[chocolate123]

If I am planning to be a grad student starting in the fall of this year, and have a 401k plan still open from my last job (that I left three years ago), can I still make the 17,000-a-year contribution this year and in future years, as well?

[Petunia 100]

If I am planning to be a grad student starting in the fall of this year, and have a 401k plan still open from my last job (that I left three years ago), can I still make the 17,000-a-year contribution this year and in future years, as well?

No. An employee may not contribute more than 100% of their compensation to their employer's 401k plan. Since you have no 2013 compensation from the employer, your limit is zero.

http://www.irs.gov/Retirement-Plans/IRC-401%28k%29-Plans-Operating-a-401%28k%29-Plan

[chocolate123]

Thanks! My current expense ratio is .21 (large-cap). I would like to roll over to Vanguard to consolidate my holdings (currently at Prudential) and buy into an international index. I also just realized that it is a Roth 401k, not just a normal one. Is my thought process sound?

[Petunia 100]

Thanks! My current expense ratio is .21 (large-cap). I would like to roll over to Vanguard to consolidate my holdings (currently at Prudential) and buy into an international index. I also just realized that it is a Roth 401k, not just a normal one. Is my thought process sound?

You absolutely want to keep your investment costs as low as possible. Vanguard is an excellent choice.

Your portfolio should hold both US large cap and international. A diversified portfolio holds US stocks of all sizes, foreign (both developed and emerging market) stocks of all sizes, and US bonds. You may wish to hold additional asset classes as well.