I’ve worked as a 401(k) plan consultant for more 30 years, with companies like Apple and AT&T, so I am an advocate for 401(k) plan participants and have dealt with this situation many times. For the vast majority of 401(k) plan participants, in my experience, it does not make sense to roll over their 401(k) balances from a prior employer into an Individual Retirement Account, or IRA. Average 401(k) balance limits optionsThe average 401(k) account balance in 2017 for the average American worker was a little more than $100,000. However, most 401(k) plan participants can receive objective investment advice from the advisor attached to their 401(k) plan – at no cost. As a result, I believe most investors make bad decisions when they decide to roll over their 401(k) plan accounts to IRAs.

Source: Forbes March 03, 2019 12:33 UTC