kastnna wrote:
> 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.
It was a good start. The thread from January added:
(Disadvantage)
3. if one has substantial NUA (Net Unrealized Appreciation)
on employer stock in that 401k (which may be better to
transfer to a *taxable* account, depending on cir***stances)
(Advantage)
8. IRA allows for easy move to Roth IRA. (This may really be 1a, as you
can roll from 401(k) to Roth, but I'd be concerned if you tried to do it
past 12/15 with a 401(k) admin needing it done by year end.
Joe
(This would be a good question to add to the FAQ, and update if there
are more items to add to the list.)
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