Move 401K to IRA a good move?

Question

I have a lot of money in a 401K and am being advised to move it to an IRA. Would this be a good move?
I am retired and am no longer putting money into the 401K . I don't need the money or interest from the money to live on, just want to get the best returns on my money.

Answer 1

If you have a LOT of money in the 401k, you need to think seriously about taxes too. Depending on your tax bracket currently, you should think about beginning to move portions to a Roth IRA. Why? Because income earned from a Roth IRA is tax free. Let us assume for argument sake that your current taxable income is under $60,000 annually, if you are married. Then you should move each year enough 401k money to a Roth IRA to keep you under the $60,000 limit which is the step up to the next tax bracket. The sooner you begin doing this the less your ultimate tax bill will be. You will have to pay taxes on everything you move to the Roth IRA, but by doing so now and limiting the amount each year, you will save a lot of money in the long run.

Now to answer your original question. Yes move it to a traditional IRA account. Either with an on line broker or with an excellent mutual fund company. Fidelity is both. Then begin periodically moving some of that money each year to a Roth IRA account.

Answer 2

What is it invested in?
Who manages the plan?
Can you choose from hundreds of investments, or just a few?
Are you happy/unhappy with the returns so far?
I would say if you are " computer litterate"..and you have time on your hands to do a little reading....then "roll" your money into an IRA with a company like Fidelity, T.Rowe, Vanguard....everything will be in one place...invested exactly where you want it to be...and under fingertip control ( BY YOU)
Any company will give you retirement plans and options, and solid advice... log on and have them send you material that you can look over some morning before you go fishing ( isn't that what all you retired guys do ?)

Answer 3

yes, it is a good move.

Your 401k has limited investment choices. And they aren't necessarily good investments. As an IRA, you can invest in almost anything. So you can pick the best mutual fund, bond, or stock.

Answer 4

Yes!!

ROTH IRA grows tax free and tax free when you withdraw at retirement.

TRADITIONAL IRA is tax deductible and taxed at retirement.

Answer 5

yeah move it, that is your best bet, just remember you may loose lots of money if the stocks go down.