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401k Rollover Options: How to Move Your 401k to an IRA | Investing Sense

Learn more about 401k Rollovers Rolling your 401(k) into an IRA is one way to manage your former employer’s 401(k) if you’re leaving a job or retiring. Certified Financial Planner Andy Smith of The Mutual Fund Store presents guidelines on how to better manage your IRA rollover. Rolling over your old 401(k) dollars into an IRA typically offers the most benefit and flexibility. A rollover IRA allows you to move the balance of an old plan directly to an IRA account avoiding the tax implications and penalties associated with a 401k withdrawal. These accounts will typically allow a wider range of investment options, as well as more flexibility when it comes to making withdrawals; however, keep in mind that you will be solely in charge of managing the account in addition to your new 401k, which could require more homework and dedication. Although a 401(k) rollover into an IRA can provide more investment options, some brokers take advantage of investors and these options and c