What to Do With Your 401(k) When You Retire: Key Considerations and Strategies
Understanding Your 401(k) Options
It’s one of the major financial decisions confronting older workers: What should I do with my 401(k) plan once I retire? Following retirement, individuals generally have two main choices:
- Roll over their retirement savings into an IRA, which can offer more flexibility and investment options.
- Leave their funds in their current 401(k) plan, depending on the plan’s rules.
The Benefits of Each Option
Rolling over your 401(k) into an IRA can potentially lead to a broader range of investment opportunities and may lower your fees. On the other hand, keeping your funds in a 401(k) may simplify your management and provide certain employer benefits.
Conclusion
Ultimately, the decision should align with your financial goals. Comprehensive evaluation and possibly seeking advice from a financial expert can help you navigate this important transition successfully.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.