By moving it into an IRA of your own control you can diversify it to compliment the selections your employer gives you because their selections are usually limited. If you need a good person, I can get you contact info for the agent who handles all four generations in my family.
My 401k is still in the same account from my previous job. It is still earning money, it's just that there are no "deposits" being made anymore from me or my crappy ex-employer. There are no fees being charged for me to keep it there. I kind of like it because it's through ING and I signed up for some kind of management thing where they optimize it for me, to make the most money. There is a small fee for that, but it's minuscule. When I first started at my most recent job, I rolled it over from my old-old job into the job-i'm-now-laid-off-from plan with no problem. I don't really have any experience with an IRA though.
Well knowing the saver you are... there are some limits depending on what your Adjusted Gross Income is and what kind of plans you are moving between.
If you have an IRA - it is a great way to fund that and they generally have more flexibility. Most 401k's chose a finite number of funds to contribute to. Some 401k's match what you deduct but generally don't match a large rollover amount. And it depends on what kind of fee's each takes - percentage vs. flat fee can take a chunk out depending. And are you going to move your IRA to a Roth IRA? Sometimes you want to wait until you have moved because there are caps.
Sorry it really kind of depends on what you have and what you want to do.
I think there are IRAs that you can rollover your pre-tax dollars or something and then you can't touch it without paying a lot of taxes on it. This isn't confusing, just I haven't giving a lot of thought to it. I just know that I did it with my last job because it made sense then and it looks like it make the most sense now.
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If you have an IRA - it is a great way to fund that and they generally have more flexibility. Most 401k's chose a finite number of funds to contribute to. Some 401k's match what you deduct but generally don't match a large rollover amount. And it depends on what kind of fee's each takes - percentage vs. flat fee can take a chunk out depending. And are you going to move your IRA to a Roth IRA? Sometimes you want to wait until you have moved because there are caps.
Sorry it really kind of depends on what you have and what you want to do.
http://genxfinance.com/how-to-roll-over-your-401k-when-you-leave-or-lose-your-job-the-401k-rollover/
http://www.moolanomy.com/1828/401k-rollover-to-ira-what-is-it-and-how-does-it-work/
http://www.irs.gov/publications/p590/ch01.html#en_US_2010_publink1000230568
http://www.irs.gov/formspubs/article/0,,id=177968,00.html
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I gotta be confused though. What else would make IRA's different than any other investment if not tax-deferral?
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