It can often be a lot of trouble to move assets out of an old employer 401(k) Plan to an IRA, especially if the 401(k) is hosted by an insurance company. The paperwork can be a real pain, and when your life is already stuffed to the gills with responsibilities, 401(k) paperwork does not sound too appealing. You may not even be convinced it is worth your time. I believe it is worth your efforts and here is why:
1. Greater Investment Choices. Often, 401(k) plans offer limited investment choices which limits your ability to participate in stocks that operate all over the world.
2. Lower Fees: IRAs do not have to conform to ERISA rules, so their fees tend to be lower
3. Professional Management. When you hang on to an old company 401(k) you are on your own in managing the assets.
A Fee-Only Financial Planner can help walk you through this maze.
