Hello,

A couple of tangentially-related questions about rolling over into Vanguard funds. I need a bit of advice on strategy on account types, more than anything else. I don’t seem to be getting definitive answers on this.

I have a 401(a) from an employer from years ago. 401(a) has a relatively small amount of money left in it, around 15k. It’s from my days, the beginning of my career, working for one of Big Brother’s fine public universities.

I have a 401(k) from a different, previous employer. There’s a greater amount in the fund than the above. but I’m not contributing to it (obviously, since I can’t). It’s a separate account than the 401, in terms of plan administrator.

I’m a consultant and have no 401(k) now for several months. Actually my agency offers one, but they have no matching contribution, so it’s not terribly appealing (note: I am W2).

Question 1: Now, it seems to make sense to me to consolidate these accounts into a Vanguard account (where I have other, taxable, holdings), and I’m GUESSING the correct one would be a traditional IRA. I like the fund choices, and the control, that Vanguard gives me, over some random other fund administrator, so my agency’s 401(k) ‘benefit’ (as they call it) doesn’t appeal to me. is that reasonable? And is a traditional IRA the right approach, here?

2: When I first joined my last employer a few years ago, the 401(a) administrator, when I called them about rollover options, pushed back. they were vague (I was young) and they gave me some verbal smoke-blowing about, “Well, the terms of your plan make it impossible to roll over more than 50%, and even there you have to get sign-off from higher ups at the University.” after a few more years of adult wisdom, that now sounds like smoke-blowing balderdash, lies, to discourage me from taking my money from them. has anyone ever heard of these limits on a 401(a) plan after you’ve terminated employment with the 401(a) participant?

3. Bogleheads will be furious at this question but I’ll ask it anyway. are the tax penalties and implications the same if withdrawing from a 401(a) as the are for a 401(k)? I am reading 10% plus 20% withholding.

Bogleheads :: View topic – 401(a), 401(k), and balderdashian antics