To Rollover or Not to Rollover
Posted November 22, 2022
Posted November 22, 2022
With a new year just around the corner, you may be looking at your financial portfolio and looking to make any advantageous adjustments in 2023. Maybe you’re considering opening a Health Savings Account, or you’re starting to think about creating a business exit plan or taking more intentional strides toward saving for retirement.
Clients often ask whether they should roll their 401(k) into an IRA. Before rolling over a 401(k) or other qualified plan account balances to an IRA, it’s critical to weigh the pros and cons of the situation.
As you likely know, both 401(k)s and IRAs have valuable tax benefits and are essential tools to help you save for retirement. However, there are distinguishing differences between the two, such as 401(k)s are offered by employers and IRAs are opened by individuals. Additionally, IRAs typically offer more investments, and 401(k)s offer higher contribution limits (Source: NerdWallet).
Here are the primary advantages and disadvantages when considering rolling over your 401(k) or other qualified plan account balances to an IRA.
IRA Rollover Advantages
IRA Rollover Disadvantages
As you are making plans for 2023, setting new goals, and thinking about the future, consider all the advantages and disadvantages when making choices about your financial future.
As a fiduciary and your partner in prosperity, the Thayer Financial team is ready and willing to discuss your unique financial situation and help you make the best decision. You can visit our website today to schedule your initial consultation with our team.
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