Should I Rollover my 401k to an IRA?

Whether or not you should IRA rollover your 401k, 403b, or other employer retirement plans to an IRA depends on your circumstances. For some people, it is better to IRA rollover their employer retirement plans such as 401k or 403b but for others it is best to keep the 401k, 403b, or other types of employer retirement plan where they are.

Should I Rollover my 401k to an IRA?

Should an investor rollover a former employer 's qualified retirement plan to an IRA?

The following "Should I Rollover my 401k to an IRA?" section compares the features of a Traditional IRA vs. a Employer Qualified Retirement Plan:

1. Investment Choices:

Traditional IRA

Generally limited

Qualified Retirement Plan

Limited to investments offered by the plan

2. Special exceptions to 10% penalty on distributions under 59 1/2:

Traditional IRA

• Higher education expenses for you, your spouse, and you or your spouse's child or grandchild
• $10,000 lifetime exception for a first time home for you, your spouse, and you or your spouse's child or grandchild

   

• Medical expenses over 7 1/2% of your adjusted gross income (AGI) 

   

• Medical insurance premiums under certain conditions

Qualified Retirement Plan

Distribution is made

(1) after the employee has separated from service for the employer maintaining the plan and

(2) such separation from service occurred during or after the calendar year in which the employee attained age 55.

<< Previous    [1]  2  3    Next >>