Ok...so I opened a Fidelity 401K, now what?

I opened my Roth and Trad 401k's today.

I want to pick a freedom fund for both but how do I even get this started? the website is so confusing!!
I looked at the Freedom Funds at it looks like their is a 2500$ startup price to enter into one. Does this sound right?

If I begin to deposit money every month I won't be able to see the benefits of a 401K until I can buy one of these Freedom Funds with an initial investment of 2500$!

help please

No my employer isn't offering this. I thought a a 401k is an IRA? I have opened both for my retirement. I figured having the tax benefits of both wouldn't hurt. The site is layered and from what I see....I pretty much have opened up 2 savings accounts until I hit a specific amount of money.

If you have a 401(K), then find out your company's matching policy...contribute the max allowable to get the match.

Are you talking 401(k) or IRA? Your 401(k) is through your employer, they will automatically deduct from each paycheck as you specify. Is the Roth you speak of an IRA?

I think you have your terminology confused as well. It sounds like you have a Roth IRA and a Traditional IRA. My recommendation is to ask Fidelity to assist you with the asset allocation for both IRA's.

If your employer has a 401(k) plan consider enrolling into that when eligible. This money grows tax deferred and lowers your current income tax bracket. Then roll the traditional IRA and Roth IRA monies into your 401(k) plan (assuming your employer allows rollovers") this will consolidate things and keep things tidy.

Chances are the 401(k) plan may have a Roth (k) feature. Call your employer and asked if they have a 401(k)
Do they allow rollovers
Do they have a fund like the freedom funds (most likely yes)



Good Luck!

You are 100% right...You've essentially started a savings account until you reach the IRA purchase minimum. I would look at all of the funds to see if there is a reasonable fund (given current market conditions) that do not have the minimums (doubtful) and utilize that...otherwise the money market fund and it's 4% interest is where you need to be until you get that $2500.