Having just changed jobs, the decision of what to do with my former employer’s 401(k) plan has been weighing heavily on my mind and so it was very fortuitous when I read a recent CNN Money headline article about the three “options” you have in this decision. I wrote an article a few weeks ago detailing the process of rolling over a 401(k) plan into another 401(k) plan but that’s only one of three options you have. The other options are to do nothing or to roll it into an individual retirement account (IRA).
The first option of doing nothing is merely the status quo and technically what I’m doing right now. If you aren’t entirely sold on your new employer’s 401(k) options and you weren’t content with your former employer’s choices, moving it into an IRA can solve these problems. Personally, I haven’t had the time to review my options in depth so I’ve just left everything alone until I do. If I look into my new 401(k) and don’t like what I see then the last option is to roll it into an IRA. The downside explained in the article is that the mutual fund options you have will likely be higher but you do get the option of potentially converting the IRA into a Roth IRA.
Right now I’m leaning towards moving all my retirement assets into my new employer’s 401(k) but I’ll need to take a closer look at the funds, the fees, etc. before I jump into that process.
via CNN Money .