Rolling money over from a 401(K) into an individual retirement account (IRA) can be risky and it is important to have a trusted financial service adviser. This column discusses some of the useful strategies that people can employ to avoid being caught in a rollover trap. If a person is satisfied with an employer’s plan because it has low-cost index funds and international diversification, then they do not have to take money out of it when they change employers or retire. People should also do careful research when looking for a low-cost money manager. It might be a good idea to consider going with a mutual fund company. Everyone should remember to ask about fees upfront and to put careful thought and research into the services that are being offered.
See John Wasik, Avoid This 401(K) Rollover Trap, Forbes, February 26, 2016.
