Rethinking 401(k) Rollovers

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Jim,

Jim Hodsdon of ME 12:10PM February 14, 2012

These are some key things to consider, however it seems to be a good idea to rollover your IRA more often than not. Simply the lack of investment choices that are associated with many plans is reason enough. In addition, there is not going to be any match, or real benefit for rolling it into your next employer plan.
There are additional resources that you can use on our site that may help you to make this decision.
Mike Rowan
http://www.eRollover.com

Mike Rowan of GA 8:56PM December 09, 2010

Cap,
dont know if you are still seeking answer. long story short there can be some advantages to "rolling out" of your 401k/403b upon retirement. some financial vehicles allow for the assets to be passed outside of probate, also there are often more distribution options available(that could help prevent a large tax burden on heirs) what concerns me is that the people you are talking to are treating this as a priority. i am sure there are much more important things to be looking at first.

tim of WI 5:30PM December 08, 2010

What I don't get is the enormous push on the part of all the money-retirement centers to get you to roll-over your money for "better management" and "infinite" financialchoices. Somebody other than the beneficiary stands to make out big on this. Several years ago I was told by my 403K providers to forget such a thing at my age; now that I'm ready to tap my 403K, every planner, including those associated with my annuity, are trying to get me to roll over. Seems fishy to me. My only question is: upon my decease what happens to my money (I expect a considerable sum to survive me)? Is it still there for my heirs and designated causes? If so, is it subject to more taxes to my heirs than it would be if I had rolled it over? Stop commanding: Rover, roll over! Give me compelling REASONS. I'm happy with my current management of my retirement money, and I certainly don't need more let alone infinite choices to choose among. (Looking at 10-year records and beyond, it appears to me that stocks, bonds, and everything else you can think off, converges and averages about the same.)

Cap of WI 11:54AM November 03, 2010

What I don't get is:
1. If I'm trying to roll over a 401K with my previous employer to a traditional IRA, am i subject to the $5000 contribution per year limit? Also, can I deduct the whole amount of my rollover even though I make more than $66K a year?

Lily of MO 1:58PM October 22, 2010

401k withdrawal age is 55 if retired I believe.

Richard of MD 3:26PM October 05, 2010

401k withdrawal age is 59.5, not 55 as stated in this article, per IRS:
http://www.irs.gov/retirement/sponsor/article/0,,id=151926,00.html

ted of CA 2:44AM September 05, 2010

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thorpparti of 12:16AM November 24, 2009

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heallstede of 7:31PM November 23, 2009

You can not take a hardship if you are no longer an Employee. Hardships are only available to current employees. You should speak with the carrier that holds your money and not go by what online says. I have noticed alot of times generic info is online and you need a real person to speak with about your situation. You can roll over all 401(k) Plans if you are not employed anylonger. Or over the age 59 1/2 unless your plan allows for a younger age.

TacomaJoe of WA 1:52PM October 29, 2009