If you’ve changed jobs or retired, then it’s probably time to move your 401(k) to a rollover RIA.
1. You’ll have more control
Now you have so many options available to you. You can move your money to any brokerage company that offers IRAs, which almost all companies do. The best bet is to find one that offers the lowest fees and gives you the most investment options.
You’ll also have more control over your investment choice. Whereas in a 401(k) you’re limited by the funds that your employer has made available, in an IRA you can make your own investment decisions. This can include individual stocks as well as mutual funds; there are a wide variety of options that are available.
2. You can take cash distributions without mandatory withholdings
When you take a distribution from your 401(k) without directly rolling it over to another qualifying plan, there is a required federal withholding. Most states also have a default withholding which you can opt out of. When you move to an IRA, you can have taxes withholdings taken out of your distributions. This gives you more control over the ways you get your money.
3. Lower Fees
In general, IRAs have lower administrative fees. Lower fees, whether in the form of administrative fees or management fees are key to long term investing success.