Many companies will also match your savings, giving you what is basically free money. So you may want to consider a 401(k)-to-IRA rollover—that is, moving your plan’s assets into an IRA.Moving your 401(k) to an IRA (or even a Roth IRA) isn’t too hard. One of the best ways to save for your future is by taking advantage of an employer-sponsored savings plan like a 401(k), which is entirely portable and transferable should you leave that employer.
There can be three main benefits: Obviously, an IRA has to be set up before you can roll your funds over into it.
If you already have an existing IRA account that you are happy about, it is easiest to move your 401(k) money there.
There are several scenarios in which an employee will need to decide what kind of distribution to take from a 401(k) or other employer-sponsored plan.
Below is information about 401(k) distributions, which will often be similar to other employer-sponsored plans.
Your decision should reflect consideration of various factors, including the benefits and penalties involved.
Some of these factors include, but are not limited to, investment or account related fees and expenses, differing levels of service available, withdrawal penalties, creditors and legal protections, required minimum distributions, and factors related to owning employer stock.
Best practices should be considered before simply dividing your retirement accounts in half.
Dividing assets in half does not mean that ALL accounts are divided down the middle.
You have several options when it comes to rolling over an old workplace retirement account, such as a 401(k) or 403(b).
Making an informed decision is important.* But consider this: Over 95% of our retirement funds beat their 10-year Lipper average.** You need to maximize your return potential, so we work to keep our fees competitive.
Employer-sponsored savings plans such as a 401(k) can be a great deal.