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Ask the Hammer: Should I Roll Over My 401(k)?

Jeffrey "The Buckinghammer" Levine of Buckingham Wealth Partners answers a Retirement Daily reader's question about rolling over 401(k)s.

In this Ask the Hammer episode, the Retirement Daily reader's question is:

How should I go about deciding whether to leave my 401(k) with my former employer, roll it over into an IRA, or roll it over to my new employer's 401(k)?

Jeffrey "The Buckinghammer" Levine says that this reader's question is complicated and that he could (and has) spent an hour and a half explaining the deep intricacies of this topic. 

In this episode, Levine offers a quick overview. He points out that there are actually as many as six possible decisions that you can make about whether or not to roll over your 401(k).

You can:

  1. Do nothing. You can leave your 401(k) in your former employer's plan.
  2. Roll it over to a new plan. You can roll your 401(k) into your new employer's plan.
  3. Roll it over to an IRA. 
  4. Take a lump-sum distribution. (Although most of the time this is not a great option, there are unique situations in which this could be a good move.) 
  5. Do a Roth IRA conversion. 
  6. Do an in-plan Roth conversion. 

As aforementioned, this topic is complex; There are a plethora of drawbacks and benefits to each option. But don't fear, Jeffrey "The Buckinghammer" Levine is here... Watch the episode to learn more about each of the six possible decisions and what would work best for you.

Got Questions?


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