Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Wow -- I lock down my computer so only it can login. Today it asked me to get a text "code" message so I could login which I did. I just tried to login and it won't let me. There is no longer phone numbe to call. Only the fraud phone number. Not a good sign... maybe time to dump Vanguard. I've been with them for many years but this sucks to put it bluntly.
That's the same number that one gets by following the contact us link at the top right corner of the Vanguard home page.
The automated message at the number on those pages says that it can help with temporary passwords. Of course if you want to talk with a human being, with Vanguard you are limited to weekdays 8AM to 8PM ET. So don't get locked out again until Monday
she and her husband have gone w some adviser, Ameriprise I am thinking, without consulting me, but hey, you have to leave home sometime, even if kind of abruptly
at least he is cheap, and surely oriented toward employed millennials, and presumably prudent or at least not imprudent
so I shall delicately inquire why she is asking dad
(there is no question that their modest nut has done better since mid-May than her idiot dad who bailed out of equities altogether)
Stay Safe, Derf
You can do an in-kind distribution from a Vanguard 403(b) to a Vanguard IRA, followed by an in-kind trustee-to-trustee IRA transfer to the other firm. See the Vanguard 403(b)(7) Single Distribution Kit:
At the top of p. 3 (pdf p. 5):
"If you selected A, B, or C [direct rollovers to Vanguard IRAs], your assets will be invested in the same funds and proportions as in your existing Vanguard 403(b)(7) account, unless you indicate otherwise below ...
"D. [rollover to a] Retirement account held at another institution ... Rollover check will be made payable to the custodian/plan"
She has both a 401k and a rollover IRA at Fido the recipient, and asked which would be better, so if anyone has two cents about that, tia.
A 401K can always be rollover over into rollover IRA, but it might worth boning up on the differences before she does.
401(k) vs. IRA: Reading the Difference
IMHO the key consideration is investment options; for most people the rest is noise. (If any of the many enumerated differences matter to you, I suggest going to authoritative sources for precise details as there are many nits to pick with popular press pieces.)
If the Fidelity 401(k) plan in question has investment options that would be used and that are cheaper than comparable options in an IRA, then (minor differences aside) go with the 401(k), at least with part of the money. Otherwise go with the IRA. For example, if the 401(k) has a stable value fund that would be used, or offers cheaper pooled investments in lieu of mutual funds, the 401(k) might be preferable. (A downside of pooled investments is less disclosure about the investments and performance.)
Note that no 401(k) plan is required to accept transfers. I suspect that nearly all do accept transfers from other qualified plans. Plans are less likely to accept transfers from IRAs, but some do. It's worth checking. That would facilitate transferring first to the IRA and later to the 401(k) if desired.
It now does occur to me that she probably also could talk to Fido about putting the 403b proceeds into her existing Fido Roth, paying the 10% or 20%, since she depleted much of her Roth to buy a house. But that may be too complex a set of calcs and involve overthinking it, as she can always move trad IRA moneys to a Roth later on.
Other factors are that she has a smart (but investing-inexperienced) young husband and also a baby on the way.
The former-employer 403B proceeds are not that large, I believe, although she like most investors has greatly benefited from the crazy bull in her YA lifetime.
...And I'm still babysitting $$$ for some others. I needed the last 4 of his SS in order to get in, once the mutual fund outfit went "whole hog" with the 2-step authentication. But they wanted the SS only once, and I don't need to go through the 2-step stuff with them anymore. I have steered clear of Vanguard because of negative reports here. It just gets worse and worse, I suppose. "Name of the game." ...