No. of Recommendations: 0
Greetings, Barking Pumpkin, and welcome. You asked:

<<I'm getting ready to leave my current employer, and I'm wondering what to do with the money I have accumulated in my 401k.

Should I roll it over into my next employer's 401k, or am I better off putting it into an IRA? What's the Foolish thing to do?>>

Around Fooldom we tend to prefer having our money in an IRA where we have far greater freedom to control the investments. Most company 401k plans offer limited investment options almost always in mutual funds. With an IRA the choice is virtually unlimited.

In a 401k plan, you often have an ability to borrow (not that we really recommend you do so, because we don't). You do not have that ability in an IRA.

In a 401k plan, if you leave your job in the year you attain age 55 with money in your employer's plan, you may take distributions in any amount free of any early withdrawal penalty. In an IRA you must wait until age 59 1/2 to do so or use "substantially equal periodic payments," which may or may not provide needed income.

So, look at your goals and objectives. Then decide.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.