Hello,
I wrote a post several years ago about rolling my 401K to an IRA. The consensus at the time seemed to be that if the plan has good, low cost investment options, I should keep the funds in the 401K at least until withdrawal phase. The biggest reason given was 401Ks have greater asset protection (ERISA). See link to previous post: viewtopic.php?t=313044
I am now 63 years old and my wife (62) and I are both retired. Should I now reconsider the option of rolling to an IRA now that we are in the withdrawal phase?
Reasons for wanting to rollover now are:
1. Consolidation. This 401K account is about 50% of our retirement funds. Consolidating would definitely make life easier. More importantly, I am concerned about my wife having to navigate through multiple accounts and institutions should something happen to me.
2. Better customer service options. The 401K plan is administered by Alight. The funds are great, fees are low, and they have pretty good financial modeling resources powered by Edelman Financial Engines. I also have flexibility in withdrawing from the account should we want to tap into it, but we don’t expect to need this money for 8-10 years. However, their overall customer support is lacking my opinion, especially when compared to other institutions where I can have access to personal advisors and support staff who seem to be much more knowledgeable and communication is so much better (I would welcome thoughts from others who have experience with Alight customer service).
3. We live in a state where IRAs are exempt from lawsuits. We also have an umbrella policy (which we could increase the coverage if needed).
I am struggling making a decision. Both options offer peace of mind for different reasons. I realize ERISA protection is really important. What would you recommend? If you would recommend keeping the funds in the 401K, when would you recommend rolling over the funds?
While I am a infrequent poster, I am a frequent reader and really value the wisdom and insight I have gleaned from folks on this forum.
Thank you.
I wrote a post several years ago about rolling my 401K to an IRA. The consensus at the time seemed to be that if the plan has good, low cost investment options, I should keep the funds in the 401K at least until withdrawal phase. The biggest reason given was 401Ks have greater asset protection (ERISA). See link to previous post: viewtopic.php?t=313044
I am now 63 years old and my wife (62) and I are both retired. Should I now reconsider the option of rolling to an IRA now that we are in the withdrawal phase?
Reasons for wanting to rollover now are:
1. Consolidation. This 401K account is about 50% of our retirement funds. Consolidating would definitely make life easier. More importantly, I am concerned about my wife having to navigate through multiple accounts and institutions should something happen to me.
2. Better customer service options. The 401K plan is administered by Alight. The funds are great, fees are low, and they have pretty good financial modeling resources powered by Edelman Financial Engines. I also have flexibility in withdrawing from the account should we want to tap into it, but we don’t expect to need this money for 8-10 years. However, their overall customer support is lacking my opinion, especially when compared to other institutions where I can have access to personal advisors and support staff who seem to be much more knowledgeable and communication is so much better (I would welcome thoughts from others who have experience with Alight customer service).
3. We live in a state where IRAs are exempt from lawsuits. We also have an umbrella policy (which we could increase the coverage if needed).
I am struggling making a decision. Both options offer peace of mind for different reasons. I realize ERISA protection is really important. What would you recommend? If you would recommend keeping the funds in the 401K, when would you recommend rolling over the funds?
While I am a infrequent poster, I am a frequent reader and really value the wisdom and insight I have gleaned from folks on this forum.
Thank you.
Statistics: Posted by YetiPlease — Wed Sep 11, 2024 9:26 am — Replies 6 — Views 265