Re: Rollover old 401k or not?

On Mar 9, 8:30 am, Art Harris <n...@[EMAIL PROTECTED]
> wrote:
> I still have a 401k from a company I left 13 years ago. I like the
> funds offered, and have not felt inclined to roll it over into an IRA.
> The plan is administered by a major financial institution.
>
> Are there any risks or disadvantages to not rolling it over into an
> IRA? I'm still a few years away from retirement.

POTENTIAL advantages:
1. Hassle of dealing with former employer and it's administrators.
2. IRS's ability to "freeze" 401k due to company malfeasance.
3. Better ability to personally manage fees and expenses in IRA.
4. Multiple IRAs allow for personally crafted stretch provisions upon
death.
5. IRAs have wider selection of investment choices.
6. Consolidation of statements and paperwork if combining multiple
401k and IRAs.
7. 401k plans often need to be amended (at the employers discretion)
to accomodate new tax laws. IRAs don't.

POTENTIAL disadvantages:
1. 401k may allow distributions at 55 without penalty.
2. Institutional investments that may not be available to IRA
investors.

That's a good start, I think.

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