A 401(k) rollover is often a pivotal financial move for many investors, demanding a clear understanding of its potential impacts. Here are key factors to keep in mind:

Investment Fees: Generally, 401(k) plans offer more cost-efficient investment funds compared to those available in IRAs.

Investment Options: Unique investments, such as guaranteed funds or stable value funds that function like high-yield cash or money market accounts, are exclusive to 401(k)s and not available in IRAs.

Convenience: Merging your retirement savings into a single IRA can simplify management by making it easier to handle aspects like asset allocation, fund selection, designating beneficiaries, and adhering to required minimum distributions.

Creditor Protection: 401(k) funds usually offer superior protection from creditors under federal law, safeguarding your assets in cases of bankruptcy or legal challenges. In contrast, the level of protection for IRAs can vary depending on state laws.

Flexibility: IRAs typically provide more control over the timing and amount of withdrawals compared to 401(k) plans.

Company Stock: If you hold company stock within your 401(k), there may be tax benefits to keeping it there rather than rolling it over to an IRA.

Loans: For those leaving an employer, a 401(k) may still allow the option of taking out loans, a feature not available with IRAs.

Before proceeding with a 401(k) rollover, it's essential to carefully consider these factors to ensure your decision aligns with your financial goals and long-term retirement plans.

Source:https://www.cnbc.com/2023/12/05/what-to-know-before-rolling-money-from-a-401k-to-ira.html