5 Reasons Not to Roll Over Your 401(k)
Rolling over your 401(k) can be one of the most beneficial things you can do to ensure you have a comfortable retirement. But it also might not be necessary or even advantageous. Depending on your circumstances, there are times when rolling over your 401(k) to an IRA could even be against your best interests. Here, we'll look at five of the biggest reasons you should not roll over your 401(k).
The Rule of 55 is one of the lesser-known secrets in financial planning, and it makes your 401(k) plan all the more valuable should you choose to retire early. If you retire the day you turn 55, you'll have access to your 401(k) money penalty-free -- though you'll still have to pay taxes on any amount withdrawn if it's a pre-tax 401(k).
Note that this rule doesn't apply to IRAs, and you do need to be formally retired to access the money penalty-free; you can't utilize the Rule of 55 if you quit your job only to take another one three months later. The Rule of 55 also acts as an incentive to roll IRAs into your 401(k) so you can have access to as much penalty-free money as possible.
Source Fool.com
