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IRA rollover
originally posted: 11/22/2006
reposted: 2/18/2011 This post has not been recently
reviewed or revised by the author and may be out of date. If you notice an error or are in doubt, please send a new question by email or ask for an update. Email asktony@tonynovak.com.
Q:
Can I have my bank handle my 401(k) rollover when I leave my job?
A:
You could, but that would be a mistake because this is your most expensive option. Banks use high commission annuities and mutual funds as the primary investments in IRAs. You could save hundreds, maybe thousands of dollars, by using "no load" investments. Also, a bank's investments may impose a penalty for early withdrawal of those funds if you want to use some of the money in the near future. OnlineAdviser can handle this transaction for a flat fee of $150 and avoid all of these problems.
Summary
More resources:
www.irarolloveradviser.com
