3 ms·

I wish I could specify which financial provider I wanted to use for managing my accoiunt, provide info similar to ACH info for direct deposit, and go from there

by mikece 3y ago

I wish I could specify which financial provider I wanted to use for managing my accoiunt, provide info similar to ACH info for direct deposit, and go from there (ditto with HSA). Instead, I have to remember to roll-over 401k account assets after I change jobs, something I cannot do immediately and easily forget about.

scarface_74 3y ago
When I just started a new job. They told me to go anywhere and set up an HSA and give them a form
xyzelement 3y ago
I get that what you're describing would be "better" but sounds like a very small deal. How often are you switching jobs that rolling all those 401ks is a real burden? The reality behind it is that 401k administration is a heavy and expensive process and the reason it's all pooled together at one provider is that. Obviously once you're done, you can take it anywhere into an IRA.
- xur17 3y ago
  > I get that what you're describing would be "better" but sounds like a very small deal. How often are you switching jobs that rolling all those 401ks is a real burden? It's not just the rollovers when you switch jobs. It's also being locked into whatever funds (and fees) the plan your company selected offers. Especially given you can go standup a full 401k for yourself if you are self employed for free (at Fidelity amongst other places).
jkaplowitz 3y ago
> (ditto with HSA) For HSA, you can do a variation of that: open a separate HSA anywhere you want and set up recurring monthly trustee-to-trustee (i.e. direct) transfers of your payroll contributions plus any employer contributions from one HSA to the other. This can all happen while you're employed. You still need to make sure to adjust the transfer amounts any time you or your employer contributes less to the employer-affiliated HSA, generally avoid overdrawing either account, and make sure to count your contributions only once per year at tax time. But there are no other downsides.

by mikece 3y ago

scarface_74 3y ago

When I just started a new job. They told me to go anywhere and set up an HSA and give them a form

xyzelement 3y ago

I get that what you're describing would be "better" but sounds like a very small deal. How often are you switching jobs that rolling all those 401ks is a real burden? The reality behind it is that 401k administration is a heavy and expensive process and the reason it's all pooled together at one provider is that. Obviously once you're done, you can take it anywhere into an IRA.

xur17 3y ago
> I get that what you're describing would be "better" but sounds like a very small deal. How often are you switching jobs that rolling all those 401ks is a real burden? It's not just the rollovers when you switch jobs. It's also being locked into whatever funds (and fees) the plan your company selected offers. Especially given you can go standup a full 401k for yourself if you are self employed for free (at Fidelity amongst other places).

jkaplowitz 3y ago

> (ditto with HSA) For HSA, you can do a variation of that: open a separate HSA anywhere you want and set up recurring monthly trustee-to-trustee (i.e. direct) transfers of your payroll contributions plus any employer contributions from one HSA to the other. This can all happen while you're employed. You still need to make sure to adjust the transfer amounts any time you or your employer contributes less to the employer-affiliated HSA, generally avoid overdrawing either account, and make sure to count your contributions only once per year at tax time. But there are no other downsides.