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#110 1/2 - ONE MORE pro of rolling over employer plans (like a 401(k)) to an IRA

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Content provided by Andy Panko. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Andy Panko or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://ro.player.fm/legal.

I'm a buffoon and I missed including another important pro of doing an employer plan-to-IRA rollover in episode #110's list of pros and cons of rollovers. The additional potential pro is the ability to do Qualified Charitable Distributions ("QCDs") out of the IRA if you're at least 70 1/2 and charitably inclined.
So, the recap the full list of pros (including QCDs) and cons of doing an employer plan-to-IRA rollover:
Potential PROS of rolling over an employer plan to an IRA or Roth IRA:

  • More investment options
  • Likely lower fees and costs
  • Access to professional advice
  • Better control over tax withholdings
  • More withdrawal options
  • Less Required Minimum Distributions ("RMDs") to manage
  • Less financial clutter
  • Gain the ability to do Qualified Charitable Distributions ("QCD")

Potential CONS of rolling over an employer plan to an IRA or Roth IRA:

  • May lose the ability to take early distributions without penalty
  • May lose the ability to cleanly do backdoor Roth IRA contributions
  • May lose the ability to continue to delay RMDs from that plan (if you're still working at that employer)
  • Lose the ability to take loans from the money
  • May lose the ability to take advantage of Net Unrealized Appreciation ("NUA") of company stock
  • May lose access to a stable value or managed income portfolio investment option
  • Potentially less creditor protection

Links in this episode:

To send Andy questions to be addressed on future Q&A episodes, email andy@andypanko.com

  continue reading

122 episoade

Artwork
iconDistribuie
 
Manage episode 432546271 series 3305727
Content provided by Andy Panko. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Andy Panko or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://ro.player.fm/legal.

I'm a buffoon and I missed including another important pro of doing an employer plan-to-IRA rollover in episode #110's list of pros and cons of rollovers. The additional potential pro is the ability to do Qualified Charitable Distributions ("QCDs") out of the IRA if you're at least 70 1/2 and charitably inclined.
So, the recap the full list of pros (including QCDs) and cons of doing an employer plan-to-IRA rollover:
Potential PROS of rolling over an employer plan to an IRA or Roth IRA:

  • More investment options
  • Likely lower fees and costs
  • Access to professional advice
  • Better control over tax withholdings
  • More withdrawal options
  • Less Required Minimum Distributions ("RMDs") to manage
  • Less financial clutter
  • Gain the ability to do Qualified Charitable Distributions ("QCD")

Potential CONS of rolling over an employer plan to an IRA or Roth IRA:

  • May lose the ability to take early distributions without penalty
  • May lose the ability to cleanly do backdoor Roth IRA contributions
  • May lose the ability to continue to delay RMDs from that plan (if you're still working at that employer)
  • Lose the ability to take loans from the money
  • May lose the ability to take advantage of Net Unrealized Appreciation ("NUA") of company stock
  • May lose access to a stable value or managed income portfolio investment option
  • Potentially less creditor protection

Links in this episode:

To send Andy questions to be addressed on future Q&A episodes, email andy@andypanko.com

  continue reading

122 episoade

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