401k
Are you holding pensions assets in the United States?
You may have lived in the United States and subsequently left leaving behind a 401k, or you may be an expat who is having trouble accessing your current 401k. You don’t have to let the 401k sit unattended until it’s time to evaluate your retirement options.
Potential Advantages of Rolling Over a 401k to an IRA:
WIDER SELECTION OF INVESTMENT CHOICE
The 401k is likely limited to a small sample of the investment options that are available. However, with an IRA, most types of investment are available, including not just mutual funds, but also individual stocks and exchange-traded funds (ETFs). Having more options can help them develop a better long-term strategy for your retirement savings.
LOWER COSTS
Depending on their 401k plan, there may be lower-cost fund options in an IRA.
FLEXIBILITY FOR WITHDRAWALS
Rolling money into an IRA will enable you to manage your withdrawals and taxes you’ll pay on them. In addition IRA’s could offer more flexibility in determining which assets to liquidate vs a 401k which typically take an equal amount out of each investment.
MORE CONTROL
If you find that a fund in their 401k is not performing well, you may not be able to find another investment option to switch to as easily as you can with an IRA.
WEALTH TRANSFER ADVANTAGES
Upon death, there’s a good chance that your 401k will be paid in one lump sum to your beneficiary. An IRA generally allows you to name multiple beneficiaries or even a trust as a beneficiary.
FEWER RESTRICTIONS
Understanding your 401k is not always easy – each company has a lot of flexibility in how they set up the plan. Instead IRAs are standardized by the IRS.At the end of the day there are pros and cons to both the 401k and IRA models. Our specialist financial advisors can help you determine if the IRA platform is the right option for you.