So I started a new job in 2022. At that point, I opened an IRA with Merrill Lynch (to maximize credit cards points with my BOA Premium Rewards card) and transferred my 401k funds into that account. And I contributed to a 401k account at that new job.
Fast forward to the present, I’m starting yet another job. Now I’m trying to decide if I want to rollover my 401k funds from my old job to the new 401k (managed by Fidelity), or if I want to move these funds into my IRA at Merrill Lynch.
Merrill Lynch IRA balance is currently at 58k. My old job’s 401k balance is 32k. It’ll put me 10k shy of BOA’s Platinum Honors Tier (https://promotions.bankofamerica.com/preferredrewards/en). So I feel compelled to put my funds in the IRA for that reason and also for the freedom to invest in whatever funds/equities I want.
My main question – is there any draw back from this plan? Specifically regarding tax penalties, etc? Or should I just rollover my old job’s 401k funds into my new job’s 401k?
Thanks in advance!