Comments on: Should You Rollover a 401k into an IRA?

By: Ryan

Ryan — Sun, 11 Oct 2009 13:54:56 +0000

I agree, Sandy – a 401k or an IRA by itself may not be enough for retirement planning. One should run the numbers to try and determine how much they can and should set aside, and if the numbers are different, try to find a way to save more.

By: Cheapskate Sandy

Cheapskate Sandy — Sun, 11 Oct 2009 00:20:31 +0000

I agree with Curious Cat, most company 401K’s are pretty limited in choices. Really, I just use it to avoid paying tax on money that I want to save. As long as I don’t lose money to inflation, I’m okay with it.

The 401K is not the be all and end all of retirement planning. Personally, I’m not hanging my hat on it or and IRA.

By: Curious Cat Investing Blog

Curious Cat Investing Blog — Sat, 10 Oct 2009 12:05:55 +0000

I agree, the most important thing is to keep the funds in tax advantaged retirement accounts. I think most often you are better off switching to a IRA with the additional options you gain for managing your money. 401(k) plans are great for retirement planning but many companies have very limited investment choices and often much higher expenses on the fund choices than should be paid (as do most mutual funds). A few funds are run for the benefit of investors instead of the fund owners and those have much lower fees – you can chose those funds in your IRA.

By: Ryan

Ryan — Tue, 06 Oct 2009 19:35:11 +0000

Miss M, I’m not sure if the $5,000 rule is a hard and fast rule, or a standard that many companies follow. That was the number with my old plan and a number I have seen around the web.

And I agree about consolidating accounts. It makes it easier to keep track of everything, which in turn gives you a better financial picture and makes it easier to balance your assets.

By: Miss M

Miss M — Tue, 06 Oct 2009 19:31:11 +0000

I’ve taken the lazy route and left it, but I’m starting to think I should move the money for simplicity’s sake. Otherwise I’ll end up with a million little accounts in a few years! Interestingly enough the $5k rule must only apply at the time you leave a company, last year’s market freefall took my old 401k below that threshold and I’ve never received any notice that I need to move the money.

By: Ryan

Ryan — Tue, 06 Oct 2009 19:15:39 +0000

Inaction could be a good thing if your old plan is a good one, but it could be an expensive lesson if your old plan doesn’t have good investment options or if it has high fees. It’s easy enough to do a 401k rollover, so it’s worth the effort if it is your best option.

By: John DeFlumeri Jr

John DeFlumeri Jr — Tue, 06 Oct 2009 18:56:54 +0000

It’s a scary enough time as it is changing jobs, so it feels better no to do anything for a while.

By: Craig

Craig — Tue, 06 Oct 2009 15:42:43 +0000

This is something I am thinking of doing when my account is eligible to do so in a few months. Would rather keep things in one place.