For many people, a 401(k) is the largest financial asset they carry into retirement. Deciding what to do with it can affect investment choices, expenses, taxes, access to savings, and the way retirement income is managed for years to come.
One of the most common misconceptions is that retiring automatically means moving a 401(k) into an IRA. In many cases, former employees may be allowed to leave their savings in the existing plan, and depending on their circumstances, that could be the better decision.
In this episode of Coasting in Retirement, Josh Null and Jay Stubbs examine the potential advantages and disadvantages of a 401(k) rollover. They discuss how plan costs compare with IRA expenses, along with differences in investment options, account control, accessibility, organization, and coordination with a comprehensive financial plan.
They also explore situations in which keeping money inside a 401(k) may preserve valuable planning opportunities, particularly for certain early retirees or individuals considering Roth strategies.
Would an IRA give you greater flexibility, or would moving the account cause you to surrender an important benefit? And do you understand the services and total expenses associated with each option?
Listen to the full episode to learn which questions to ask before making one of retirement’s most consequential financial decisions.
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