Q: Why should I move my 401(k) from my former employer to a Rollover IRA?

A: First, I am never a fan of leaving money where you no longer are. There can be material changes to the plan or investments and you will potentially not find out about those changes in a timely manner.

Second, if you need funds from your retirement account, a withdrawal from a 401(k) will have a mandatory 20% withholding for Federal income Tax, you may not be in a 20% tax bracket.

Third, the internal expenses in a corporate 401(k) are generally higher than the fees a Certified Financial Planner™ would charge.

Fourth, you will have more investment choices outside of the 401(k).

Take you hard earned retirement savings with you, do not leave it to chance.

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