Effortless 401k Rollover to IRA Strategy Revealed
Potential Costs and Considerations
While the rollover process itself is typically free, be aware of potential costs associated with your new IRA. These can include annual account maintenance fees, trading fees, and fund management fees. Comparing these costs across different providers can lead to significant savings over time3.
Additionally, consider the tax implications if you have a Roth 401(k). Rolling over to a Roth IRA involves paying taxes on the pre-tax contributions and earnings, which can be a substantial cost upfront but offers tax-free withdrawals in retirement4.