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Retirement - Should You Leave Your 401(k) With Your Employer?

More and more plans are offering retirees the option of keeping their funds in their employer-sponsored 401(k) upon retirement. Since this is relatively new, we wanted to explain the shift in thought and offer a few pros and cons as you think through your options.


Pros and Cons of Not Rolling Over Your 401(k) to an IRA

Pros:

  • Leaving your 401(k) account with your employer may help you save on fees, since they can buy funds at institutional pricing rates.

  • Funds in a 401(k) are protected by federal law from creditor judgments (other than IRS tax liens and spousal or child support orders), including bankruptcy.

Cons:

  • You can’t make new contributions, nor will you be eligible for any employer contributions.

  • You may have fewer investment choices. A typical 401(k) plan has a few dozen funds to select from, while an IRA can provide thousands of options.

  • You might have a hard time managing and tracking your savings if you have multiple accounts. Consolidating your retirement accounts by rolling your 401(k)s into a single IRA can simplify your financial life.


This is a lot to consider, but we’re here to help. As soon as you know your retirement date, start asking about your options, or better yet, give us a call, and let’s review them together. As always, we’re just a phone call or email away.


The Gasaway Team






7110 Stadium Drive

Kalamazoo, MI 49009 (269) 324-0080 FAX (269) 324-3834

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This presentation is not an offer or a solicitation to buy or sell securities. The information contained in this presentation has been compiled from third party sources and is believed to be reliable; however, its accuracy is not guaranteed and should not be relied upon in any way, whatsoever. This presentation may not be construed as investment advice and does not give investment recommendations. Any opinion included in this report constitutes our judgment as of the date of this report and are subject to change without notice. The views expressed are those of the author as of the date noted, are subject to change based on market and other various conditions. Material discussed is meant to provide general information and it is not to be construed as specific investment, tax or legal advice. Keep in mind that current and historical facts may not be indicative of future results. Certain risks exist with any type of investment and should be considered carefully before making any investment decisions. Keep in mind that current and historical facts may not be indicative of future results. The information provided is for educational purposes only and not intended to provide any investment, tax or legal advice. Additional information, including management fees and expenses, is provided on our Form ADV Part 2 available upon request or at the SEC’s Investment Adviser Public Disclosure website.

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