Comments on: Five Biggest 401K Rollover Mistakes http://www.myretirementblog.com/five-biggest-401k-rollover-mistakes.html Retire happy, healthy and wise. Sat, 22 Nov 2008 13:17:32 +0000 http://wordpress.org/?v=2.6.3 By: scott brooks http://www.myretirementblog.com/five-biggest-401k-rollover-mistakes.html#comment-60409 scott brooks Mon, 21 Jan 2008 23:50:53 +0000 http://www.myretirementblog.com/five-biggest-401k-rollover-mistakes.html#comment-60409 Not exploring NUA and the age 55 rule are two big mistakes. Other mistakes include chasing investment returns. If I had a $1 for every Rollover IRA that was demolished by the Nasdaq bubble I would be a rich man. Not exploring NUA and the age 55 rule are two big mistakes.
Other mistakes include chasing investment returns.

If I had a $1 for every Rollover IRA that was demolished by the Nasdaq bubble I would be a rich man.

]]> By: » Roundup: Happy New Year Edition! on Blueprint for Financial Prosperity http://www.myretirementblog.com/five-biggest-401k-rollover-mistakes.html#comment-59373 » Roundup: Happy New Year Edition! on Blueprint for Financial Prosperity Mon, 31 Dec 2007 16:37:25 +0000 http://www.myretirementblog.com/five-biggest-401k-rollover-mistakes.html#comment-59373 [...] out the top 5 retirement mistakes at My Retirement Blog. 12/30/07, Read more in Personal Finance | 34 [...] [...] out the top 5 retirement mistakes at My Retirement Blog. 12/30/07, Read more in Personal Finance | 34 [...]

]]> By: Honest Dollar http://www.myretirementblog.com/five-biggest-401k-rollover-mistakes.html#comment-59187 Honest Dollar Fri, 28 Dec 2007 22:55:36 +0000 http://www.myretirementblog.com/five-biggest-401k-rollover-mistakes.html#comment-59187 A minor mistake: Rolling over into your new employer's 401(k). This isn't a horrible mistake since (if you roll it over directly into the new custodian) you won't be hit with a penalty or a tax. However, an IRA at a reputable brokerage will give you far more investment choices, which can help you find better funds with lower fees. Exception is if new employer is a firm (most often a financial institution) that requires you to disclose all investment accounts (even retirement accounts) in which you can make trades. My employer not only required this disclosure, but I also had to roll any investment accounts into its brokerage. Consequently, I couldn't just drop my 401(k) into an IRA. Still, I'm pretty happy with the fund choices in my 401(k) so I'm not too bad off. A minor mistake: Rolling over into your new employer’s 401(k). This isn’t a horrible mistake since (if you roll it over directly into the new custodian) you won’t be hit with a penalty or a tax. However, an IRA at a reputable brokerage will give you far more investment choices, which can help you find better funds with lower fees.

Exception is if new employer is a firm (most often a financial institution) that requires you to disclose all investment accounts (even retirement accounts) in which you can make trades. My employer not only required this disclosure, but I also had to roll any investment accounts into its brokerage. Consequently, I couldn’t just drop my 401(k) into an IRA. Still, I’m pretty happy with the fund choices in my 401(k) so I’m not too bad off.

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