Why You Should Rollover Your 401(K) Plan

When one leaves the employment of a particular company, there comes a point when he or she has to make the choice whether or not to rollover their 401(k) plan. While it isn’t a good idea to leave your money in your prior employment 401k plan, there are far more advantages to a rollover rather than withdrawing it out.

So, here is a list of advantages in a rollover of your 401(k) Plan:

#1: The first advantage is the fact that now you have control over your own money because you have transferred it to your new employer’s 401k plan, an IRA plan that is being run by a Fund or brokerage company or even a self-directed IRA.

#2: This means that now you won’t be limited to the funds that your previous employer selects but you can now make your own investment options, within the limits of the funds or brokerage that you roll your money into.

#3: Under an employer-directed 401k plan, you will have to pay 2% fees to your account manager but when you rollover your money, you can choose an administrator who does not charge high fees for taking care of your investments, thus increasing your savings as well.

#4: A Rollover of your 401k plan also gives you the freedom to pick from hundreds of administrators at a fund or brokerage company who will be more than happy to take care of your needs by giving you options to stay in touch with your investments, thus protecting your savings as well.