I am asking for advice on transferring my current work 401K to my current Vanguard Traditional IRA (VSMGX)Life Strategy Moderate Growth, Expense Fee 0.13%, Balance $257,748.00 and to my Vanguard Roth IRA (VTWAX) Total World Stock Index Fund, Expense Fee 0.09%, Balance $21,604.00
The reason why I want to transfer it to Vanguard is to save on fees and fund expenses which I believe are much cheaper at Vanguard versus my current work 401K plan. I am 67 and drive a public transit bus and have contributed regularly to my work 401K since 2007. My current work 401K balance is $294,000.
I have reduced my work hours to only 3 days a week about 24 hours per week total, and cannot contribute anymore to my work 401K as I am not a fulltime employee anymore. I like the reduced hours and I like my job and do not desire or plan to work fulltime anymore for my company.
I called my 401K Administrator this morning and they told me I could withdraw 95% of my 401K now and that I could could transfer it in to my Vanguard IRA accounts due to my age and since I am no longer contributing to it anymore. They told me I had to leave 5% of my 401K with them to cover any future plan expenses. The remaining 5% would be transferred out when I leave the company.
My current Work 401K is as follows with a current balance of $294,000
Loomis Sayles Investment Grade Bond Y (LSIIX) Fund Expense 0.49, $43,528.00, 14.81%
MetLife Stable Value Fund (RELIANCE) Fund Expense 0.62, $77,184.00, 26.25%
T Rowe Price Instl Large Cap Growth (TRLGX) Fund Expense 0.55, $33,043.00, 11.24%
Vanguard Instl Index I (VINIX) Fund Expense 0.35%, $140,246.00, 47.7%
In addition to the above individual mutual fund fee expenses, my 401K administrator charges me the below fees to service my 401K account. I have broken down the fees by Quarter from last year 2024 for your review:
Quarter 1 Jan 1, 2024 to March 31,2024
Fiduciary Bond Insurance $23.22
Plan Legal Fee $1.11
Quarter Admin Fee $10.00
Quarter Advisory Fee $15.40
Total Quarter 1 Fees = $49.73
Quarter 2 April 1, 2024 to June 30, 2024
Audit Fee $5.84
Plan Legal Fee $5.27
Quarter Admin Fee $10.00
Quarter Advisory Fee $15.50
Total Quarter 2 Fees= $36.61
Quarter 3 July 1, 2024 to Sept 30, 2024
Cyber Liability Insurance $5.72
Plan Legal Fee $1.24
Quarter Admin Fee $10.00
Quarter Advisory Fee $15.56
Total Quarter 3 Fee=$32.52
Quarter 4 Oct 1, 2024 to Dec 31, 2024
Audit Fee $26.11
Plan Legal Fee $4.98
Quarter Admin Fee $10.00
Quarter Advisory Fee $56.76
Total 401K Administrative Fees for 2024 are $175.62
I am not going to list my plan fees for this year 2025 as they are very similar.
So please advise me if I should immediately transfer 95% of my current work 401K to Vanguard to save alot of money on expenses.
My gut tells me to transfer to Vanguard after comparing expenses, but I definitely want to receive other opinions from the shared wisdom of our investment forum.
The reason why I want to transfer it to Vanguard is to save on fees and fund expenses which I believe are much cheaper at Vanguard versus my current work 401K plan. I am 67 and drive a public transit bus and have contributed regularly to my work 401K since 2007. My current work 401K balance is $294,000.
I have reduced my work hours to only 3 days a week about 24 hours per week total, and cannot contribute anymore to my work 401K as I am not a fulltime employee anymore. I like the reduced hours and I like my job and do not desire or plan to work fulltime anymore for my company.
I called my 401K Administrator this morning and they told me I could withdraw 95% of my 401K now and that I could could transfer it in to my Vanguard IRA accounts due to my age and since I am no longer contributing to it anymore. They told me I had to leave 5% of my 401K with them to cover any future plan expenses. The remaining 5% would be transferred out when I leave the company.
My current Work 401K is as follows with a current balance of $294,000
Loomis Sayles Investment Grade Bond Y (LSIIX) Fund Expense 0.49, $43,528.00, 14.81%
MetLife Stable Value Fund (RELIANCE) Fund Expense 0.62, $77,184.00, 26.25%
T Rowe Price Instl Large Cap Growth (TRLGX) Fund Expense 0.55, $33,043.00, 11.24%
Vanguard Instl Index I (VINIX) Fund Expense 0.35%, $140,246.00, 47.7%
In addition to the above individual mutual fund fee expenses, my 401K administrator charges me the below fees to service my 401K account. I have broken down the fees by Quarter from last year 2024 for your review:
Quarter 1 Jan 1, 2024 to March 31,2024
Fiduciary Bond Insurance $23.22
Plan Legal Fee $1.11
Quarter Admin Fee $10.00
Quarter Advisory Fee $15.40
Total Quarter 1 Fees = $49.73
Quarter 2 April 1, 2024 to June 30, 2024
Audit Fee $5.84
Plan Legal Fee $5.27
Quarter Admin Fee $10.00
Quarter Advisory Fee $15.50
Total Quarter 2 Fees= $36.61
Quarter 3 July 1, 2024 to Sept 30, 2024
Cyber Liability Insurance $5.72
Plan Legal Fee $1.24
Quarter Admin Fee $10.00
Quarter Advisory Fee $15.56
Total Quarter 3 Fee=$32.52
Quarter 4 Oct 1, 2024 to Dec 31, 2024
Audit Fee $26.11
Plan Legal Fee $4.98
Quarter Admin Fee $10.00
Quarter Advisory Fee $56.76
Total 401K Administrative Fees for 2024 are $175.62
I am not going to list my plan fees for this year 2025 as they are very similar.
So please advise me if I should immediately transfer 95% of my current work 401K to Vanguard to save alot of money on expenses.
My gut tells me to transfer to Vanguard after comparing expenses, but I definitely want to receive other opinions from the shared wisdom of our investment forum.
Statistics: Posted by Indexfan — Tue Oct 07, 2025 5:39 pm — Replies 0 — Views 94