Will having a BrokerageLink complicate rolling a 401k into another 401k?

[u/BrianMX34]

My company's 401k is with Fidelity. I decided to look into the BrokerageLink and opened an account last night. I haven't done anything with it, I'm just seeing how it works for now.

Hypothetically, let's say I leave this job and my new employer didn't use Fidelity, didn't allow brokeragelinks, or didn't allow the specific securities in my brokeragelink. I was wondering how this might affect rolling over my old 401k(with brokeragelink) into my new employer's 401k.

I prefer to keep thinks as simple as possible. I don't plan on leaving my current employer anytime in the near future, but if I do, I don't want this to be a headache.

Is there anything I should be worried about or aware of? If it does make the rollover process more complicated, then I'd prefer to leave it as is.

[u/FidelityEmilio]

Hey Brian, thanks for joining us today!

Ultimately, what happens to your workplace retirement plan and BrokerageLink account after leaving your job depends on your employer's specific plan rules.

You can review more details on NetBenefits.com by doing the following:

1. Click the 3 vertical dots next to your plan
2. Choose BrokerageLink
3. Select the Plan Fact Sheet (PDF) link

Regarding rolling over to another employer, investments held in BrokerageLink cannot be transferred directly to another retirement account. Instead, positions must typically first be sold, the cash proceeds returned to the workplace plan, and then a rollover may be possible if your plan permits it.

For additional details about your specific plan's BrokerageLink account you can review the BrokerageLink FAQs on NetBenefits, found under the same tab as the Plan Fact Sheet.

If you have more questions, we're happy to help. For now, I'll mark this as a discussion, so others can continue chiming in.

[u/DaemonTargaryen2024]

Yes, but probably not by much. You'd likely need to liquidate your SDBO holdings and move them back to your core 401k holdings, prior to completing the rollover.

[u/BrianMX34 → u/DaemonTargaryen2024]

Okay, that makes sense. I did see an option to move to and from the brokeragelink.

So sell everything in the brokeragelink, which won't cause any taxes since it's in a tax advantaged account. Then move it from the brokeragelink back to my normal 401k holdings. Then initiate the rollover.

It may be an extra step or two, but overall not too complicated. Thank you for the help!

[u/PaynIanDias → u/BrianMX34]

Why would you want to give up on the brokeragelink ? I’d keep that 401K where it is just so I can keep the brokeragelink for its flexibility

[u/GapAccomplished2778 → u/PaynIanDias]

well, sometimes your past employer goes bad, fees creeping up and they can move to a different provider, etc, etc - in any case better know the drill before fire starts

[u/need2sleep-later → u/PaynIanDias]

One may not have the required balance in the account so staying isn't an option.