#110 - Pros and cons of rolling over employer plans [like a 401(k)] to an IRA

Retirement Planning Education, with Andy Panko

Andy summarizes the pros and cons of rolling over an employer plan (such as a 401(k), 403(b), 401(a), 457 or the federal Thrift Savings Plan) to an IRA or Roth IRA. To sum up:
Potential PROS of rolling over an employer plan to an IRA or Roth IRA:

• More investment options
• Likely lower fees and costs
• Access to professional advice
• Better control over tax withholdings
• More withdrawal options
• Less Required Minimum Distributions ("RMDs") to manage
• Less financial clutter

Potential CONS of rolling over an employer plan to an IRA or Roth IRA:

• May lose the ability to take early distributions without penalty
• May lose the ability to cleanly do backdoor Roth IRA contributions
• May lose the ability to continue to delay RMDs from that plan (if you're still working at that employer)
• Lose the ability to take loans from the money
• May lose the ability to take advantage of Net Unrealized Appreciation ("NUA") of company stock
• May lose access to a stable value or managed income portfolio investment option
• Potentially less creditor protection

Links in this episode:

• Summary of the creditor protection of IRAs and Roth IRAs by state - here

• Tenon Financial monthly e-newsletter - Retirement Planning Insights
• Facebook group - Retirement Planning Education (formerly Taxes in Retirement)
• YouTube channel - Retirement Planning Education (formerly Retirement Planning Demystified)
• Retirement Planning Education website - www.RetirementPlanningEducation.com

To send Andy questions to be addressed on future Q&A episodes, email [email protected]