A. There are pros and cons to rollover your 401k to IRA:
Cons rollover 401k to IRA
- 401k assets are protected from claims from creditors, but IRA asset usually not
- No 10% penalty if you withdraw money from 401k if you leave your job between 55 and 59.5, but not from IRA
- Your former employer might offer some low cost funds that not normally accessible elsewhere
- Put all your assets in one place, easier to manage
- More options for investment, although might be easier to lose money if you are not careful
- Avoid high fees if your former employer's 401k choices are very expensive
There is one more important benefit by rolling 401k money into an IRA - so you could create guaranteed lifetime income!