Should I Roll Over My Dormant Traditional 401k?
401(k)s and IRAs have many unique features that may be beneficial to you, depending on your 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
Robert J. Pyle, CFP®, CFA, AEP® founded Diversified Asset Management, Inc., in 1996 to provide personalized, comprehensive wealth management services to successful individuals, families, single women, and business owners. His specialty is addressing the complex financial needs of self-employed professionals, corporate executives, and small-business owners. Our disclosure can be found here. The views, opinion, information, and content provided here are solely those of the respective authors, and may not represent the views or opinions of Diversified Asset Management, Inc. Diversified Asset Management, Inc. cannot guarantee the accuracy or currency of any such third party information or content, and does not undertake to verify or update such information or content. Any such information or other content should not be construed as investment, legal, accounting, or tax advice.