This week, the podcast takes a look at what to do with a 401(k) account left behind with a former employer – should you leave it there, or roll it over to an Individual Retirement Account (IRA)?
People stuck in this situation will be looking for emergency lifelines to meet living expenses. And retirement accounts will be a tempting option, as the emergency CARES Act passed in March provides flexible hardship withdrawal options for 401(k) and individual retirement accounts.
For jobless workers who don’t need to tap retirement accounts right now, the choice is to leave the money where it is, or roll it over to an IRA. This is an important decision whenever you leave a job.
Joining me on the podcast this week to talk about IRA rollovers is Scott Puritz. Scott is the managing director of Rebalance, an investment firm that helps clients manage retirement assets. Rebalance argues that rollovers usually are the best move – and especially so when you’re shifting out of a high cost 401k plans into an IRA invested in very low cost passive mutual funds.