Q. I am about to retire and could access my 401k savings. What can I do with the fund?
A. You have as many as 6 options in front of you when you retire or have access to the plan funds:
Which option is the best? The answer varies with different people. There are many factors to consider. For example, just rollover alone, you need to consider many factors, see our next blog post discussion.
A. You have as many as 6 options in front of you when you retire or have access to the plan funds:
- Leave the funds in the current employer plan and keep investing, nothing changes
- Move the funds to a new / alternative employer plan, if you will have one
- Roll the funds over to an IRA, if you already have an IRA elsewhere
- Convert the funds to a Roth IRA, better do it when your income tax is low
- Complete an in-plan Roth conversion (in-plan Roth rollover)
- Take a lump-sum distribution, make sure there is no penalty, then invest on your own
Which option is the best? The answer varies with different people. There are many factors to consider. For example, just rollover alone, you need to consider many factors, see our next blog post discussion.
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