Should I move my IRA to my new job's 401(k)?

  @Money June 17, 2013: 4:13 PM ET
Are you on track for retirement?
NEW YORK (Money Magazine)

I'm 59, and I just got a new job. Should I move my IRA to the 401(k) plan or keep it separate? -- Louis, Houston

Are the fees lower in your 401(k) than in your IRA? Would you like all your retirement dollars in one pot? Do you prefer your 401(k)'s investment options?

If the answers are yes, yes, and yes, a roll-in could make sense, says Kevin O'Fee, a defined-contribution management executive at Fidelity.

First, find out if your plan permits it; about half do. (You can't add a Roth IRA, though.) Then think about when you want to get at the money.

Related: Change jobs, get poor 401(k) help

You can make penalty-free withdrawals from a traditional IRA starting at age 59½; not all 401(k)s let current employees do that.

Related: The virtues of a 401(k)

On the flip side, if you plan to work longer, a roll-in could pay. After age 70½, you must take yearly withdrawals from your IRA; your 401(k) probably won't require that until you retire. To top of page

Got a question for Ask the Expert? Send it to AskTheExpert@moneymail.com.


Join the Conversation
Overnight Avg Rate Latest Change Last Week
30 yr fixed4.41%4.44%
15 yr fixed3.33%3.31%
5/1 ARM3.34%3.55%
30 yr refi4.39%4.41%
15 yr refi3.31%3.30%
View rates in your area
 
Find personalized rates:
Rate data provided
by Bankrate.com
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.