Dodge & Cox Balanced?

Question

I invested $15k last year in the Dodge & Cox Balanced Fund through my previous employer's Roth 401k plan, but my new employer does not offer this fund (or a Roth 401k). I would like to continue to invest in this fund via an IRA but it is closed to new investors. Is there any way around this as I still hold my $15k in the fund through my old employer? For example, can I convert it to a Roth IRA with Dodge & Cox and continue to contribute via a Roth IRA?

Answer 1

You should be able to rollover the account into a D&C Roth IRA. Also, many employers will let you leave the money with them (it probably lowers their costs to have more money under them)

As long as you have one account with that SS number, D&C will let you open another account with the same SS number, even if the fund is closed. I have a D&C Stock 401k rollover IRA, and they let me open a Roth for D&C stock fund last year.

Answer 2

More often than not, when you execute a custodial transfer from one manager to another, the positions you are invested in the old account need to be cashed out, then the proceeds rolled into the new account.

Unless both investement companies can agree to keep your position intact, it might be best to keep your money in your former employer's Roth 401k intact, just to keep the D&C position. Which is not bad, as long as the company holding that account is reputable, like Fidelity. My wife still has a 401k acct active through a former employer from 4 yrs back and is still doing nicely.

Another option is to see if, in the potential new account holder, you are willing to invest in a fund w/ similar asset allocations and performance charateristics as DODBX. I can see, from past performance, why you'd want to stay with DODBX.