Tuesday, November 17, 2015
Few options may seem to exist when determining what to do with the funds a client has accumulated in an employer-sponsored 401(k) upon changing employers — and the most likely course of action is to roll those funds into an IRA. While this strategy may be advisable in some cases, and can certainly serve to consolidate the client’s accounts to simplify management, there are important scenarios in which an IRA rollover is not the best move. In fact, in some instances. rolling 401(k) funds into an IRA can actually present serious tax and non-tax disadvantages.
To make the right decision and maximize the value of the client’s retirement nest egg, it’s necessary to evaluate all pieces of the puzzle before jumping for an IRA rollover.
Read Byrnes & Bloink's analysis The case for skipping the 401(k)-to-IRA rollover