Benefits of consolidating 401ks

Most plans do not have an issue with your funds remaining even though you have not because they are making money off of your balances.

But there are a few plans that have penalties for non-employees, so you want to make sure that you do not get penalized for waiting.

Frankly, I would roll it to an IRA with a good custodian (TD, Schwab, Fidelity) and hire a good advisor to manage it for you.

Pick a fee based advisor who believes in passive...

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Most of the time, a Rollover IRA is a better option but its a case by case review. 401k Plans have many flaws; high fees and poor fund selections are two big ones.In addition, you should seek some personalized financial counseling to get your best answer. There is a little used section of the Internal Revenue, Code 72t, that allows withdrawals from a retirement account at ages 55 and 59 1/2 while avoiding the onerous 10% early withdrawal penalty.This provision can be used from company 401(k) plans and 403B plans, but does not apply to SEP IRA's...The best solution is to directly roll your old 401k over to an IRA at one of the large custodians: Vanguard, Fidelity or TD Ameritrade to name a few.  An IRA will give you a larger number of investments to choose from than a 401k plan.  Also, IRAs frequently have lower costs than 401ks.Unfortunately, our website is currently unavailable in most European countries.One problem is often forgetting about it and your family having trouble finding it or knowing it exists.So make sure you have good documentation to prevent this from being a problem. If you can answer that question with logic - then it might be a good idea."They said that they didn't think it was a lot of money," Lewis says."I said, ' That's ,000, buddy.'" Steven B.Your timing may depend on whether you choose to assess the merits of your new retirement plan.Moving your 401(k) to another qualified plan, such as another 401(k) offered by a new employer may be beneficial, but you may want to evaluate your investment alternatives and other features first.

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