2 Replies Latest reply on Dec 10, 2014 5:58 AM by Susanna144

    What are the benefits of rolling over my 401k?

    Melanie Christensen

      I keep hearing people talking about "rolling over" but what does that mean exactly?

        • Re: What are the benefits of rolling over my 401k?
          JerryD

          I "rolled over" several 401k's to an IRA. This placed all of the funds in one place with many choices on how to invest them without being restricted to the employers' rules and choices. After years of chasing investments in the mutual fund and investment broker environments, we decided to consolidate all to TIAA-CREF where we understand the much smaller number of good investment choices.

           

          IMHO as one grows older, the scenario of retirement funds scattered across a number of locations can add to the work and stress of managing these funds. I also believe that selecting from among a few handfuls of choices is also much, much better than trying to analyze 1,000s of choices available in the open market and chasing the latest "hot" investment. GOOD LUCK!!!!

          • Re: What are the benefits of rolling over my 401k?
            Susanna144

            Rolling over isn't just consolidation of retirement assets with one provider, it's the only way to move money from one retirement fund to another without a penalty before you reach age 60.  The benefits are even greater, when you consider the complexities of the Required Minimum Distribution (RMD) calculation that must be made when you get to age 70 1/2.  It's easy to satisfy the tax laws with a single RMD withdrawal if you have consolidated your retirement investments, and much harder if you have not, especially if some of your funds are in 403b retirement funds.  403b funds each must have their own individual RMD taken out, every year.