[Beth]

Thoughts on pros/cons of rolling an old 401k into a rollover IRA vs leaving in the 401k account at prior employer?

Investment options and fees are nearly identical.

Trying to think through creditor protection benefits in one vs the other.

In NC.

Love the idea of consolidating into an existing rollover but don’t want to overlook benefits that may exist only in 401k.

TIA!

[Patrick]

Roll it to new 401 if you are thinking of retiring early (55 +) and withdrawing without penalty.

Rule of 55 it’s applies to 401 that you retire from not previous

[Trevis]

Rule of 55 and fees are the two things that I think of.

[Linda]

I never like to leave any money with a prior employer, but that’s just me.

[Danielle]

401k may have plan administration fees beyond the investment fees.

I have one I’m struggling to rollover due to maiden name issues and haven’t tried overly hard because it’s with to the same brokerage I already use so easy to monitor and I wouldn’t change the investments, but I do get a small fee from time to time.

Some plan sponsors cover the fees, some pass to participants.

[Jamie]

Check your state’s tax laws. At least one state allows you to exempt some income from 401(k) but not from IRA, even if the IRA is a rolled over 401(k).

[Amy]

Depending on if you are maybe wanting to convert to Roth IRA would be the only thing

[Katie]

What exactly are you thinking of rolling it into? That would determine any issues you may face.

[Author]

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