Comments on: Should You Roll Your 401(k) to an IRA? It’s Not A No-Brainer. http://personalfinancebythebook.com/should-you-roll-your-401k-to-an-ira-it%e2%80%99s-not-a-no-brainer/ Making You a Winner at Money and Life Sat, 19 May 2012 22:49:31 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Personal Finance RoundUp: GRABBBR Edition http://personalfinancebythebook.com/should-you-roll-your-401k-to-an-ira-it%e2%80%99s-not-a-no-brainer/comment-page-1/#comment-8770 Personal Finance RoundUp: GRABBBR Edition Fri, 26 Aug 2011 02:54:02 +0000 http://personalfinancebythebook.com/?p=2476#comment-8770 [...] Should You Roll Your 401(k) to an IRA? It’s Not A No-Brainer [...] [...] Should You Roll Your 401(k) to an IRA? It’s Not A No-Brainer [...]

]]> By: How to 86 your 401(k) http://personalfinancebythebook.com/should-you-roll-your-401k-to-an-ira-it%e2%80%99s-not-a-no-brainer/comment-page-1/#comment-4822 How to 86 your 401(k) Wed, 10 Nov 2010 10:02:47 +0000 http://personalfinancebythebook.com/?p=2476#comment-4822 [...] is a financial question, not a moral one. Yes, a 401(k) is technically for retirement and shouldn’t be touched if you want to avoid being fed by nuns in [...] [...] is a financial question, not a moral one. Yes, a 401(k) is technically for retirement and shouldn’t be touched if you want to avoid being fed by nuns in [...]

]]> By: Carnival of Financial Planning – Edition #150 http://personalfinancebythebook.com/should-you-roll-your-401k-to-an-ira-it%e2%80%99s-not-a-no-brainer/comment-page-1/#comment-2874 Carnival of Financial Planning – Edition #150 Sat, 17 Jul 2010 10:05:58 +0000 http://personalfinancebythebook.com/?p=2476#comment-2874 [...] Plemon presents Should You Roll Your 401(k) to an IRA? posted at Personal Finance By The Book, saying, “The accepted wisdom is that when leaving a [...] [...] Plemon presents Should You Roll Your 401(k) to an IRA? posted at Personal Finance By The Book, saying, “The accepted wisdom is that when leaving a [...]

]]> By: Upromise College Dream Sweepstakes and Links http://personalfinancebythebook.com/should-you-roll-your-401k-to-an-ira-it%e2%80%99s-not-a-no-brainer/comment-page-1/#comment-2825 Upromise College Dream Sweepstakes and Links Sun, 11 Jul 2010 10:39:31 +0000 http://personalfinancebythebook.com/?p=2476#comment-2825 [...] Miser. The Things We “Need” by Northern Cheapskate. The Cost of Inattention at MoneyCrush. Should You Roll Your 401(k) to an IRA? from Personal Finance By The Book. Get Rid of Credit Card Debt: 13 Tricks You’re Not Using by [...] [...] Miser. The Things We “Need” by Northern Cheapskate. The Cost of Inattention at MoneyCrush. Should You Roll Your 401(k) to an IRA? from Personal Finance By The Book. Get Rid of Credit Card Debt: 13 Tricks You’re Not Using by [...]

]]> By: Carnival of Financial Planning - Edition #149 - July 9, 2010 | Personal Investment Management and Financial Planning Blog Directory http://personalfinancebythebook.com/should-you-roll-your-401k-to-an-ira-it%e2%80%99s-not-a-no-brainer/comment-page-1/#comment-2801 Carnival of Financial Planning - Edition #149 - July 9, 2010 | Personal Investment Management and Financial Planning Blog Directory Fri, 09 Jul 2010 06:48:35 +0000 http://personalfinancebythebook.com/?p=2476#comment-2801 [...] Plemon presents Should You Roll Your 401(k) to an IRA? posted at Personal Finance By The Book, saying, “The accepted wisdom is that when leaving a [...] [...] Plemon presents Should You Roll Your 401(k) to an IRA? posted at Personal Finance By The Book, saying, “The accepted wisdom is that when leaving a [...]

]]> By: World Cup Fever Roundup http://personalfinancebythebook.com/should-you-roll-your-401k-to-an-ira-it%e2%80%99s-not-a-no-brainer/comment-page-1/#comment-2741 World Cup Fever Roundup Sun, 04 Jul 2010 01:34:20 +0000 http://personalfinancebythebook.com/?p=2476#comment-2741 [...] Should You Roll Your 401k into an IRA.  It’s a No Brainer. [...] [...] Should You Roll Your 401k into an IRA.  It’s a No Brainer. [...]

]]> By: Mike http://personalfinancebythebook.com/should-you-roll-your-401k-to-an-ira-it%e2%80%99s-not-a-no-brainer/comment-page-1/#comment-2689 Mike Thu, 01 Jul 2010 01:47:10 +0000 http://personalfinancebythebook.com/?p=2476#comment-2689 Well, I guess it all depends on what you plan on doing with the rollover... if you're just moving it to an IRA and you're not planning on making more contributions, then it doesn't matter at all. However, if you're looking at a 401k plan with lousy options or going with an IRA where you have a world of options, then contribution caps become important. That's assuming you want to concentrate all of your retirement savings in one account to maximize effectiveness and minimize the overhead - more accounts means more funds and more homework. I'm looking at just such a situation. I recently changed jobs and my new employer's 401k plan stinks - no employer match to boot! But the $5,000 cap on an IRA is less than 10% of my salary and I'm not comfortable with putting so little away each year. But I'm not crazy about putting more money in the crumby 401k funds either... Well, I guess it all depends on what you plan on doing with the rollover… if you’re just moving it to an IRA and you’re not planning on making more contributions, then it doesn’t matter at all.

However, if you’re looking at a 401k plan with lousy options or going with an IRA where you have a world of options, then contribution caps become important. That’s assuming you want to concentrate all of your retirement savings in one account to maximize effectiveness and minimize the overhead – more accounts means more funds and more homework.

I’m looking at just such a situation. I recently changed jobs and my new employer’s 401k plan stinks – no employer match to boot! But the $5,000 cap on an IRA is less than 10% of my salary and I’m not comfortable with putting so little away each year. But I’m not crazy about putting more money in the crumby 401k funds either…

]]> By: joeplemon http://personalfinancebythebook.com/should-you-roll-your-401k-to-an-ira-it%e2%80%99s-not-a-no-brainer/comment-page-1/#comment-2678 joeplemon Wed, 30 Jun 2010 15:56:29 +0000 http://personalfinancebythebook.com/?p=2476#comment-2678 Mike, Yes, the contribution caps are different for 401k and IRA, but I am not getting how that difference plays into whether you should roll a 401k into an IRA when you leave an employer. Can you help me out? Mike,
Yes, the contribution caps are different for 401k and IRA, but I am not getting how that difference plays into whether you should roll a 401k into an IRA when you leave an employer. Can you help me out?

]]> By: Mike http://personalfinancebythebook.com/should-you-roll-your-401k-to-an-ira-it%e2%80%99s-not-a-no-brainer/comment-page-1/#comment-2669 Mike Wed, 30 Jun 2010 01:44:22 +0000 http://personalfinancebythebook.com/?p=2476#comment-2669 Another big difference for me is the amount you can contribute in a calendar year. The limit for a 401k is $16,500 while the IRA is a paltry $5,000! That's potentially a very BIG difference. Another big difference for me is the amount you can contribute in a calendar year. The limit for a 401k is $16,500 while the IRA is a paltry $5,000! That’s potentially a very BIG difference.

]]> By: joeplemon http://personalfinancebythebook.com/should-you-roll-your-401k-to-an-ira-it%e2%80%99s-not-a-no-brainer/comment-page-1/#comment-2663 joeplemon Mon, 28 Jun 2010 23:46:47 +0000 http://personalfinancebythebook.com/?p=2476#comment-2663 Darren, Seems like rolling over to an IRA is the popular answer. Thanks for sharing and telling why. I agree that cashing out is almost never a good idea. Something like avoiding a foreclosure might make it justifiable, but I would have to do a lot of thinking even then. Darren,
Seems like rolling over to an IRA is the popular answer. Thanks for sharing and telling why.

I agree that cashing out is almost never a good idea. Something like avoiding a foreclosure might make it justifiable, but I would have to do a lot of thinking even then.

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