Old 401K
I have a client who has an old 401K just sitting there doing nothing but at times loseing money and sometimes making money.
Would it not be in his best interest to move the funds to an IRA of some sort that would give him a little more control?
Permalink Submitted by Alan Spross on Wed, 2008-04-09 05:38
Generally, it would be unless the multiple IRA investment choices is going to confuse and paralyze him from making a proper allocation. He may also be getting into a situation with higher costs than his 401k has. Depending on his state of residence, he also may have far better creditor protection in the ERISA plan than an IRA would have.
The more prior employer plans a client has, the more benefit of consolidation into an IRA given the above considerations. If he has just one large plan and it is allocated correctly with low expenses, it should not be hurting him.