Article describes a few little known disadvantages of rolling over your 401K into a Traditional IRA when you leave your job rather than just keeping your 401K in your employer plan or rolling it over to a plan of your new employer. A well known reason to roll it over is that by having the IRA at a brokerage like Vanguard, you'll have many more choices of mutual funds and other products with lower expense. However, one reason to keep the 401K is that you can start penalty-free withdrawals at 55 rather than 59.5 years of age. Another reason is that you can take loans against an employer plan. IRAs do not permit loans.

 

Submitted: Jun 19, 2008    Views: 87    Comments: 1    Likes: 1   


View Article: http://www.orlandosentinel.com/business/orl-ymsavvy1508jun15,0,2872...


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kyc
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greater protection from creditors afforded to employer retirement plans is another advantage over individual retirement arrangements

Posted: Jun 19, 2008



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