3 Simple Reasons to Roll Over Your Old 401(k)s and 403(b)s to an IRA



These days, it is not uncommon to move from employer to employer every few years. During these transitions it can be all too easy to leave your 401(k) or 403(b) with your old employer. Here are three quick and simple reasons why you should stay organized and consider rolling these old accounts into an IRA today.

A Broader Set of Investment Options

Your 401(k) or 403(b) is generally limited to a small sampling of investment options. If you roll over your 401(k) into an IRA, suddenly you have access to thousands of choices. A larger range of options can be helpful in developing a long-term investment strategy that works in concert with your other holdings.

Simplify and Consolidate

If you have multiple 401(k) or 403(b) accounts from past employers floating around, it can be cumbersome to take account of your portfolio in aggregate. In addition, receiving statements and keeping track of login credentials for multiple accounts can become tiresome. Rolling multiple 401(k)s or 403(b)s into a single IRA is a great way to simplify your financial life and increase your understanding of what you own and how your portfolio is positioned for the future.

Reduce Administrative Costs

It is not at all uncommon to find that a plan sponsor is charging quite a bit to custody your savings. While not all 401(k) or 403(b) plans have high administrative fees, you may find that you are paying a significant “maintenance” fee on your 401(k) or 403(b) balance(s). These fees do nothing but erode the potential return of your accounts. Rolling over to an IRA will often result in reduced account fees, leaving more of your portfolio intact for your future.

Ready to begin the rollover process but unsure how to proceed? Give our office a call and let us guide you through the process.

The information in this post was compiled by S. Zachary Fineberg, Managing Member of Fineberg Wealth Management, LLC, a registered investment advisor. If you would like to schedule a consultation to discuss how Fineberg Wealth Management can help you reach your long-term financial goals, please contact us by email or call (734) 230-7900.

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