Multiple 401K Funds - Consolidate?

[turbocobra]

I have worked for 3 companies over my 18 year career. Here are the accounts I have.

First Job - 401K rolled to Norwestern Mutual IRA - $9,000

Second Job - Still in original 401K fund - JP Morgan Chase - $92,000

Current Job - Fidelity 401K - $18K and growing

I also have yet a 4th fund - American Funds IRA - $12,000

Should I leave all as is and continue to contribute to my current 401K?

Or should I roll the 2 IRA and $92,000 401K to my current 401K to avoid paying fees, etc on the other accounts?

It will be another couple of years before I can maximize contribution to my current 401K

Thanks,

[Slug]

It's really your choice. If you can keep up with it all and are happy with the fees and fund choices, there's really no reason not to stay put. One cynicial thought is if you got married during that time period and think there might be any chance of getting divorced, you might want to think about keeping money you earned while single separate. It's sometimes treated differently during a divorce. For me, I like rolling over my 401k's to expand my investment choices to options, stocks, and ETF's. Also, brokerage firms like Ameritrade often will give you a cash bonus and free trades for rolling a large 401k to them. Shop around.

[disneysteve]

I would not roll anything into your current 401k. If you choose to rollover anything, do it into an IRA with a low cost mutual fund company or a discount broker. That way you maintain full control over the money and over your investment options.

[Broken Arrow]

Although you can choose to keep old 401(k)s where they are, I think it's better to simplify the whole thing and roll them into a centralized rollover IRA (and a Roth for conversion).

Some people will leave some 401(k)s alone because they like the company or fund choices... but other than that, there's no reason to keep them where they are.

[kv968]

If you do decide to roll it over into an IRA, I'd suggest you do it with someone besides American Funds. Decent products, but really high expenses.

[terces]

I just recently consolidated a bunch of accounts I had. Helps me to better manage them and keep fees low. Also got rid of American Funds.

Now working to do the same with hubby's.

[TermMonster]

Here's why an IRA is the best choice for rollovers:
- Much broader investment selection (more stuff you can hold)
- Easier to manage (like terces says)
AND
- Next year you can convert your IRA into a Roth IRA. Depending upon your view of future tax rates (in my opinion they are going up) this could be a very powerful option. I'll be converting mine next year.

[turbocobra]

Thanks Everyone. I think I will keep my current 401K separate, and roll the rest into a single Roth and/or Regular IRA for the reasons mentioned (easier to manage, easier to diverisfy, and potentiall lower fees)

[Broken Arrow]

Good to hear. They won't allow you to roll your current 401(k) so long as you're employed with them anyways, but that's what I do with mine. After each job, I roll the 401(k) to a central rollover IRA, where later, I can convert a little bit of it at a time to the Roth.