His 401k with his employer recently moved from T Rowe Price to Fidelity.
While it was with T Rowe Price, he did regular rebalancing between equities, bonds and money market. He only rebalanced pre-tax funds. All Roth dollars are 100% invested in equities.
Fidelity does not allow moving just pre-tax dollars between investment options. If he were to move dollars from an equity fund that has both pre-tax and Roth funds to the bond or money market, an equal percentage is taken from the pre-tax and Roth funds.
Compounded with this is that we just lowered his 401k contributions after many years of maxing it out simply because we're seeing his 401k grow more due to the market going up than from his contributions now that it has a 7-figure plus balance. So using the contributions as a way to rebalance won't make much of a difference.
Has anyone had this experience with their 401k with Fidelity and can anyone think of any clever ways to get around this or have a different experience with their Fidelity 401k?
While it was with T Rowe Price, he did regular rebalancing between equities, bonds and money market. He only rebalanced pre-tax funds. All Roth dollars are 100% invested in equities.
Fidelity does not allow moving just pre-tax dollars between investment options. If he were to move dollars from an equity fund that has both pre-tax and Roth funds to the bond or money market, an equal percentage is taken from the pre-tax and Roth funds.
Compounded with this is that we just lowered his 401k contributions after many years of maxing it out simply because we're seeing his 401k grow more due to the market going up than from his contributions now that it has a 7-figure plus balance. So using the contributions as a way to rebalance won't make much of a difference.
Has anyone had this experience with their 401k with Fidelity and can anyone think of any clever ways to get around this or have a different experience with their Fidelity 401k?
Statistics: Posted by jeffreys — Sat Jan 27, 2024 7:47 pm — Replies 4 — Views 170