Why rollover 401k to ira?

29th Oct 2009 by Joseph Pousada

There are varying reasons to roll over a 401k to an IRA and when considering this you should consult your financial advisor. One reason is that many 401k plans will have stipulations that state that upon termination of employment the plan participant must be sent a distribution within a certain time frame. After termination of employment, you may not be participating in a new 401k plan, may not like the investment options of your current 401k or may prefer to roll over your previous 401k plan due to special features or flexibility in investment options available to you through your IRA. For example, you may prefer the IRA account which is in a variable annuity due to a special death benefit feature or may prefer an IRA brokerage account that will allow covered call writing. It is important that these accounts are reviewed with your financial advisor to make sure you have a comprehensive strategy for your investment goals.

Reference:
http://www.dol.gov/ebsa/faqs/faq_compliance_pension.html

This answer is the subjective opinion of the writer and not of FinancialAdvisory.com