Whenever you change or quit your jobs, and if you have a 401(k) in your current position, you have the option of moving your account into an individual retirement account (IRA). Or when you are retired, it's also a time when you can make the switch-over from your 401(k) to an IRA. Or, in some cases, you can leave it where it is.
Which option should you choose? For most people, rolling over a 401(k) into an IRA is the best choice. Here are 4 reasons why.
1. There Are More Investment Options,
Your 401(k) is limited to a small sampling of the investment options that are available; in all likelihood, you had the choice of a few mutual funds. However, with an IRA, you have much more options to choose to grow and protect your hard-earned money. Having more options can help you develop a better long-term strategy for your retirement savings.