Benefits of Rolling Over Your Old 401(k) to an IRA

06/28/23

If you’ve ever switched jobs, you’ve probably wondered what happens to the retirement account you had with your old employer. You can no longer contribute or receive a match, so what do you do with it?

Once you’ve “separated from service” from that employer, you are eligible to move your 401(k) (or 403(b) for the teachers and nurses out there) to an IRA. There are several benefits to this, including:

• More Investment Choices

  • Within your 401(k), you can only contribute to investments that your employer allows. In an IRA, you can choose from tens of thousands of mutual funds, ETFs, etc. This means that an IRA will usually perform better than a 401(k). Don’t worry, it’s my job to help you decide which investments are right for you.

• Easier Access

  • Instead of asking for approval from your employer for certain transactions, you have the freedom to do what you want without jumping through hoops.

• Roth Conversion Option

  • Rolling over your 401(k)/403(b) to an IRA opens up the option of a Roth conversion, which could save you money in the long run.

• Better Communication

  • Many employees do not hear from their plan’s financial advisor very often because of the amount of employees that work for the company. An IRA managed by an advisor means you get more detailed attention and customized advice.

* Please contact me to help you with this process. I never charge for meetings or advice. I only get paid directly from your account(s) that I manage.