Transfer old employer 401k to new employer 401k or larger existing RothIRA? : personalfinance

Hello all,

I not too long ago began a brand new job with a brand new 401k. Hurray!

My outdated employer 401k has roughly $8k in it and, if left alone, prices me about $50/mo in administration charges.

I even have an present Roth IRA with round $100k in it (On a superb day) from once I labored jobs with out retirement financial savings choices. It’s managed by an exterior professional and prices $50/mo in administration charges.

I’m questioning if greatest follow for long run return could be to switch the outdated 401k into my new 401k with out tax penalty, OR transfer it to my extra established Roth IRA with a tax penalty, but in addition higher compounding returns?

I additionally suppose I learn that I can switch it to a RothIRA even when I already maxed my annual contribution, which seems like a superb coverage to benefit from?

For context, I’m in California and in my late 30’s. Thanks!