401k to IRA Rollover Pros and Cons

Explanation of the pros and cons of rolling over a 401(k) to an IRA.

Links in this video:

#IRARollover #401kRollover #Rollover

DISCLAIMER: This video is only helpful hints and education. It is not specific tax, legal or investment advice. Before considering acting on anything you see in this video, first consult with your tax, legal or investment advisor. While the information expressed in this video is believed to be accurate, neither Andy Panko, CFP®, RICP®, EA nor Tenon Financial LLC make any guarantees to its accuracy.

[NicholasBall]

Biggest financial mistake I ever made was with my 401k. My company had a Roth 401k when my kids were in college, but I didn't actually start contributing until year 3 of the 6 years I had kids in college. Because I was helping them with expenses, I was entitled to the tax credits, so my effective tax rate was extremely low. That is the time you NEED to be in a roth! i still retired with about $350k in my 401k.

[Elliot-Ivan]

I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.

[Michelle_Sanders]

To achieve a secure retirement, aiming to save at least 15% of your income in a 401(k) is advisable. Online tools can assist in calculating the best savings strategy for you, considering factors like age and income. Consistently saving this percentage can help build your retirement fund effectively, thanks to the benefits of compound interest.

[JT-wnwb]

Thank you for a simple straight forward explanation. I’m in the process of rolling over from 401k to IRA

[RetrieverTrainingAlone]

When retired there is an advantage. Withdrawal from 401-k has 20% withholding and with IRS slow refunds, it may be 18 months...by rolling over to an IRA and then withdrawal, no mandatory 20% withholding.

[lionmangolf]

Fantastic info. Several financial advisors have told me I have to take equal payments for five years. 🙃

[Vavaxman]

Thanks for going into some of the more subtle pros and cons.

[markamytraver]

Why is paying a financial advisor a concern? The bigger concern is whether or not the financial advisor is worth the fees?

[devereauxjnr]

Planning retirement has never been this confusing! First SVB, then Signature bank and now First republic, these are all the signs of yet another 2008 market crash and recession 2.0, so my question is do I still save in the United States dollar, or could this be a good time to buy stocks? So I’m left wondering what 2023 has in store for us investors, I’ve been sitting on over $745K equity from a home sale and I’m not sure where to go from here,

[jhors]

Thank you for posting this helpful video

[spensert]

I want to rollover a 401k for a job I no longer have. Complexity is I want to change the provider. The 401K holder now is cagey about how to get the money out!

[the_jean_mum]

Fact is, though the 401k, IRA, name it are one of the safest retirement plans, they are not particularly good options. Better strategy; Live below your means, Invest 20-30% of your income into the stock market but of course, be well informed about where you want to put your money... I made my first million earlier this year from stocks alone with about 550k after I dissolved my 401k and added little cash (through the help of a pro though). Greatest decision I ever made.

[Mayflower]

Thank you so much for the information.

[alicelewis]

Husband is retiring next March he will be 64.5 his company will not let his 401k stay with them. It is a modest 401k of 165k. We know nothing about investing dose a IRA come with a advisor and do they charge a monthly fee to care for our account? We live in Texas with the 401k, social security and a modest pension...This will be our livelihood. We have lost money before in the 90’s and investing scares us to death. Thank you for any advice. Alice

[memypencil]

Thank you, Andy, for another great video!

[BenDippold-hy]

I thought the age limit for penalty free withdraws on an IRA was 55. At the end of the video he made it sound like that wasn’t the case?

[zach]

Thanks for sharing this! I'm going to roll over my 401K to IRA as the company I work for doesn't offer 401 and I would like lower account fees.

[wmp]

#1 a money market account/stable fund pays about 1% versus 5% + in a IRA. MOST not all 401k are thieves

[marty]

Great video. Inmy case, it looks like there are more pros than cons to doing a rollover.

[matturner]

Becoming a millionaire through a Roth IRA or a 401(k) involves different strategies for maximizing profits. A Roth IRA offers tax-free withdrawals in retirement, which can be advantageous if you expect to be in a higher tax bracket later in life. On the other hand, a 401(k) provides tax-deferred growth and potential employer contributions, boosting your savings. The optimal choice depends on factors like your current and future tax situation, employer match, and investment options. Consulting a financial advisor can help tailor a strategy that aligns with your financial goals and circumstances.