What Is The Best Option for Rolling Over 401K?

Your 401(k) may be subject to taxes or penalties when you get a new job – if you don’t make the right moves. Learn about consolidating and rolling your 401(k) balance into a new 401(k) plan or IRA.

By Richard Barrington

Last updated: May 9, 2022

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Besides the tax implications discussed in the preceding slides, you should consider the characteristics of the retirement plan options available for your rollover.

Specifically, consider the range of investment choices and the fee levels involved. A new employer’s 401(k) plan might well offer a greater range of investment capabilities and more cost efficiency than an IRA you could set up on your own. On the other hand, you may value the flexibility to choose your own provider.

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About Author

Richard Barrington

Richard Barrington has been a Senior Financial Analyst for MoneyRates. He has appeared on Fox Business News and NPR, and has been quoted by the Wall Street Journal, the New York Times, USA Today, CNBC and many other publications. Richard has over 30 years of experience in financial services. He has earned the Chartered Financial Analyst (CFA) designation from the Association of Investment Management and Research (now the “CFA Institute”).