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Hello JTSheldon,
If you really plan to leave within a year and you have a decent amount in your current 401K then it probably makes sense to wait.

Lets run some numbers. What if you could keep your current money in the old plan and just invest new money in the new plan.

If you made $100,000 this year (a nice round number) and invest 6% of that salary to get a 3% match from the employer (assumes a 50% employer match rate). You’d invest $6000 and the company would give you $3000 more for a total of $9000. You lose 6% on a front-end load. That leaves you with

$9000 * .06 = $540 loss, leaving you with $8460.

If instead you invested 6% in your current fund you’d only end up with $6000.

So under certain circumstances it could make sense to switch. I will add that most employer matches require you to be there for a few years before becoming fully vested and truly owning the employer match portion. However you have been working there for a number of years already, perhaps this will not apply to your situation.

Also if you are planning to leave in a year anyway, you could pick a fund that isn’t as highly rated on Morning Star but doesn't have a frontend load. Do all of them have one?

It could still make sense to move your entire amount now, depending on how small your current 401K account is vs how high your salary is. Run the numbers and see.

If you do decide to stay longer then a year you will have to move your accounts over and you would have lost out on the first year’s 3% bonus.

Hope this helps

Sandy
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