Should I Rollover My Dormant 401(k)?
401(k)s and IRAs have many unique features that may be beneficial to retirees, depending on their circumstances. The decision to roll funds out of a former employer’s plan involves more factors than just fees and investment selection.
To help make this analysis easier, we have created the “Should I Roll Over My Dormant Traditional 401(k)?” flowchart. It addresses some of the most common issues that should be considered before doing a rollover, including:
- Common IRA and 401(k) features and differences
- Net Unrealized Appreciation options
- Age-based distribution options
- Taxes and penalties in an IRA versus a 401(k)
- Availability/existence of loans and the impact of a rollover
- Hardship Withdrawals
- Substantially Equal Periodic Payments
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