Selected articles about what to do with your 401(k) plan(s) when you retire.
NOTE : I am not a financial planner, nor is this financial advice.
My take-aways (subject to my (mis)understanding):
- In some cases, your employer may be willing to continue to manage your 401(k) for you [A.1].
- If you move your money from your 401(k), moving it to an individual retirement account (IRA) or cousin Roth IRA — or some combination of the two — seems standard [A.1,2,3]. This “roll-over” should not require a fee — in fact, some brokers may actually pay you [B.5].
- IRAs generally have more options (e.g., investment vehicles) and flexibility (e.g., payout options) than 401(k)s [A.1,2,3].
- Roth IRAs are not subject to required minimum distributions (RMDs) [A.3].
- Do NOT withdraw the money from your 401(k) [A.3]!
- “60-day rollover” rule : Basically, lets you avoid taxes and penalties if you withdraw funds from a retirement account, provided that you redeposit the funds into another qualifying (retirement?) account within 60 days [B.2].
A. Most-helpful articles:
- “What to do with your 401(k) when you retire“, by Andrea Coombes (Nerd Wallet, 2018-08-02).
- “What to do with your 401(k) when you retire“, by Rodney Brooks (U.S. News & World Report, 2019-03-15).
- “What to do with your 401(k) when you retire“, by Wendy Connick (Motley Fool, 2017-10-27).
B. Other articles:
- “How to decide what to do with your 401(k) after you change jobs“, by Melissa Phipps (The Balance, 2019-05-01).
- “What is a 60-day rollover?“, by Matthew Frankel, CFP (Motley Fool, 2017-04-13).
- “What to do with your 401(k) money when you retire“, by Rodney Brooks (Forbes, 2018-05-27).
- “How a 401(k) works after retirement“, by Claire Boyte-White (Investopedia, 2019-05-05).
- “Rolling over a 401(k)? Consider the fees“, by Tim Parker (Investopedia, 2019-05-31).