Changing Jobs

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  • Avatar SkiDoctor 
    Status: Physician
    Posts: 3
    Joined: 11/10/2017

    Considering changing jobs after 10 years, leaving private practice and going to employed with medium sized health system

    IF I leave a job that had a 401K and I am starting with a 403b / 457b, what is best way to handle the old 401k?

    If possible, would prefer to move money out of control of old employer (in case the change plans in future, etc) but don’t want to hurt my backdoor IRA potential in future.

    Should  I roll 401K into and why:


    b. traditional IRA

    c.  Roth IRA (not looking forward to the tax burden of this as account is 1mill+)

    Appreciate the help!


    #180202 Reply
    Avatar Peds 
    Status: Physician
    Posts: 3791
    Joined: 01/08/2016

    this has been answered multiple times. i will copy my previous replies as it is always the same.


    you have 4 options with retirement plans:

    1- leave it alone where it is. do this if has good options, low fees.

    2- move to new employer if accepted. do this if better options, lower fees.

    3- move to IRA. blocks backdoor rIRA, or pay tax to convert.

    4- cash out. penalties, etc.

    #180205 Reply
    jfoxcpacfp jfoxcpacfp 
    Status: Financial Advisor, Accountant, Small Business Owner
    Posts: 7511
    Joined: 01/09/2016

    Yep, a common question. See What to do with Orphaned Retirement Accounts – 7 options with when to choose each one. Not a lot different from @peds, just more detail and covers everything I could think of.

    Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~ 270-247-0555

    #180246 Reply
    Avatar jhwkr542 
    Status: Physician
    Posts: 1142
    Joined: 02/15/2016

    Most likely, you’ll want to roll to your new 403b (provided they allow it).

    #180263 Reply
    Liked by MPMD
    Status: Physician
    Posts: 2155
    Joined: 05/01/2017

    Most likely, you’ll want to roll to your new 403b (provided they allow it).

    Click to expand…

    absent something screwy with your new 403b i have a hard time imagining this won’t be the best option.

    i think you’ll be shocked by how easy it is to move money from a prior employer 401k to a new 403b. it’s probably one page that you can sign and fax.

    #180302 Reply

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