Should 401K be rolled over to another account or left with the company when you retire?

Answer 1

The primary advantages of rolling over a 401k to an IRA are more control of the dollars and a greater selection of investment options. I'm speaking generally here because I don't know the particulars of your plan. When you retire from your company it often becomes more difficult to talk to someone about your 401k. HR or benefits people tend to concentrate more on current employees. It is possible that your 401k is being managed by some 3rd party administrater like Fidelity. If that is the case my first point is not as much of a facter. My second choice applies to all people. If you keep your 401k where it is now, you are limited to whatever investments are in the 401k plan. If you roll it over to an IRA you have the ability to pick and choose from an almost unlimited selection of investment options. Any brokerage company, mutual fund company, bank, or insurance company can give you access to their investments. Take your time and really do your homework. It is quite possible that this decision may be the most important financial decision that you are ever going to make. Good luck to you and I hope that this was helpful.

Answer 2

Conventional wisdom is to roll it to another account. This way you consolidate your savings and can manage things easier.

Two reasons why you might not want to rollover:

a. The fees for your new account are higher than the fees for your previous account. But you can usually avoid this if you shop around.
b. If you roll into your new company's 401K, the choices there might be less (or worse) than your original company's choices. You can avoid this by going the IRA route with your rollover. Then you go back to step a.

Most people simply don't roll over because they are lazy and don't want to handle the paperwork. But it is very simple. Most financial companies make it quite easy to rollover.

Answer 3

You should roll your accounts into a single account as soon as possible to avoid paying multiple fees. It would be preferred to roll them into a self directed account so you have control over the choice of investment vehicles.

Answer 4

Roll it over into Vanguard. They have the lowest fees -- surely lower than leaving it at the company.

Answer 5

you should have the option. personally, I'd roll mine over to a Roth IRA

Answer 6

Roll it!