Talk of The Villages Florida - View Single Post - Advice pls
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Old 12-20-2020, 07:32 AM
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Quote:
Originally Posted by retiredguy123 View Post
I would suggest that you set up an IRA account with Vanguard or another low cost investment company. Then, do a direct transfer of all assets from the 401K account into the IRA, and maintain a similar asset allocation. I would not feel comfortable leaving my money in a 401K plan when an IRA allows me to totally control the assets and how they are invested. And, you will probably save money on the management fees. It was one of the first things I did when I retired.
That is the best way to handle a 401K when you retire. The only way I would consider leaving it would be a Federal TSP account. Their cost and investment options are close to Vanguards. Most companies 401K plans have a somewhat limited selections of investments and higher fees. Vanguard has very low fees and a very broad selection of investments. If you contact Vanguard they will handle the transfer from your company to them for free and make sure you don’t cause a taxable event.
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