The Case for Rolling an Old 401(k) Into an IRA

An old 401(k) from a former job can often remain on autopilot. Rolling it into an IRA can be advantageous in many ways. Two in particular are that it opens up the full investment landscape and closes the oversight gap.

Opening up the investment options

Inside a 401(k) you are typically limited to 10 to 20 mutual funds chosen by the plan provider. In an IRA that can open up to tens of thousands of options, giving you or your advisor access to the full investment landscape instead of a short, fixed menu.

Closing the oversight gap

An old 401(k) tends to stay parked with a former employer's provider long after you've moved on and can often sit idle without actual oversight. The idea is to have someone consistently watching every investable asset you own. Rolling the 401(k) into an IRA can bring it under the same oversight as everything else, making it easier to balance and integrate with the entirety of your portfolio.