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Here’s how to evaluate your options:

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1. Keep it in the Vanguard 401(k)

• Pros:
  • Access to institutional funds with potentially lower expense ratios.
  • No immediate tax consequences.
• Cons:
  • $60/year in admin fees eats into returns on a relatively small balance.
  • Harder to manage with multiple accounts.

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2. Roll Over to Robinhood IRA

• Pros:
  • Avoids Vanguard’s $60/year fee.
  • Robinhood covers $75 in IRA transfer fees (though not for rollovers).
  • Consolidates accounts for simpler management.
• Cons:
  • Limited investment options and tools compared to Vanguard.
  • Potential hidden costs (e.g., higher spreads or less guidance).

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3. Roll Over to New Employer 401(k)

• Pros:
  • No rollover fee after the $150 (check to confirm this).
  • Simplifies management if your employer offers good investment options with low fees.
  • Can borrow against the new 401(k) if needed.
• Cons:
  • Investment options depend on your employer’s plan, which may not be as robust as Vanguard’s.
  • Contribution limits for your current 401(k) could complicate things if you’re near the annual cap.

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4. Roth 401(k) to Roth IRA Conversion

• Yes, you can convert. This allows you to move funds into a Roth IRA if the original funds are in a Roth 401(k).
  • Pros:
  • No required minimum distributions (RMDs) with a Roth IRA.
  • Offers more investment options and flexibility.
  • Cons:
  • If you’re converting traditional 401(k) funds into a Roth IRA, you’ll owe taxes on the converted amount.

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My Recommendation

1. If your employer’s 401(k) plan has low fees and strong fund choices: Roll it into the new 401(k). This avoids Vanguard’s ongoing fees and keeps retirement funds in one account.

2. If not: Roll it into a Roth IRA (if eligible) or traditional IRA at a low-cost provider like Fidelity, Schwab, or Vanguard (avoid Robinhood unless you prefer its simplicity). This consolidates accounts and minimizes fees.

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Key Action Plan

• Ask Vanguard if the $150 fee applies to direct rollovers to your new employer’s 401(k) or an IRA.
• Confirm your new employer’s 401(k) expense ratios and fund options.
• Consider whether you want tax-free growth with a Roth IRA or prefer keeping pre-tax status.
• If you’re still undecided, park the funds temporarily in Vanguard until you finalize your consolidation plan.