Whether it is for greater investment flexibility, starting a new job, or retiring, rolling a 401(k) plan over into an IRA is usually a route that many individuals take. While in most scenarios, this is a prudent step to take, there are a couple of reason why one should consider leaving a 401(k) where it is.
One of the roles of financial planners is to try to maximize a client’s long-term, after-tax returns. This involves an in-depth look at how investments, risk & returns, and taxes blend in together. Many individuals nowadays hold different types of accounts – Taxable (Individual or Joint), Tax-Deferred (401(k)s or Traditional IRAs), and Tax-Exempt (Roth IRAs or Roth 401(k)s).