When transitioning into retirement or switching jobs, one of the critical decisions you face is what to do with your 401(k), 403(b), or other employer-sponsored retirement plans. You have several choices, such as leaving the funds in your former employer’s plan, transferring them to your new employer’s plan, taking a cash distribution, or opting for a rollover into an IRA. For those with $250,000 or more in investable assets, this checklist provides essential guidance for navigating the process of rolling over your retirement account.
Key Reasons Rolling Over Your 401k Could Be a Good Idea
- Simplified Management: Consolidating accounts reduces the number of accounts to track, making it easier to manage investments.
- Reduced Fees: Combining accounts can lower account and investment management fees.
- Optimized Strategies: You will have many more investment options and professional management is available.
- Easier Tax Management: Consolidation simplifies tax reporting and management.
- Beneficiary Clarity: Updating beneficiary information ensures your financial wishes are carried out.
