Advantages of the Rollover IRA
As a Certified Public Accountant (CPA), Michael J. Smeriglio builds on more than 30 years of experience in offering tax and financial advice. Michael J. Smeriglio maintains an independent CPA practice in Cos Cob, Connecticut, and welcomes clients who are deciding whether to roll over their 401(k) accounts.

When an employee leaves a company with which he or she has a company-sponsored 401(k), that individual has the choice to keep the money in the existing plan, cash out, or roll it over to another plan. One option for rollover is the individual retirement account (IRA), which an individual may open with the funds from an established 401(k).

There are a number of reasons why account holders choose the rollover IRA. First, the account holder may allow the funds to continue to grow tax-deferred, which is not true of a cash out. It also enables the individual to keep just one account until retirement, thus simplifying the planning process.

Rolling over to an IRA also provides the account holder with an increased variety of options. Whereas a 401(k) owner can only choose among the investments that the employer offers, the IRA holder can choose from almost any commonly available investment. Finally, these expanded choices typically come along with lower fees and even stretch-out options, which benefit both the account holder and his or her beneficiaries.
Advantages of the Rollover IRA
0
5
0
Published:

Advantages of the Rollover IRA

0
5
0
Published:

Creative Fields