Benefits of consolidating 401ks
When you’ve switched jobs multiple times in your career, you may have participated in several employer-sponsored retirement plans, such as 401(k) and 403(b) plans.
401(k)s are generally provided by many for-profit employers, while 403(b) plans are most often used by the nonprofit sector.
So, before deciding to roll over an employer-sponsored plan, you should research the details of your current account and consult tax professionals and other advisors with any questions about your specific personal situation.
If you’re a Betterment customer, you can ask questions of our licensed financial experts using the Betterment mobile app.
Betterment takes advanced investment strategies and uses technology to deliver them to more than 270,000 customers across its three business lines: direct-to-consumer, Betterment for Advisors, and Betterment for Business. Andrew Westlin is a financial planning professional at Betterment, where he provides personalized advice to customers.
Passionate about financial planning and analysis, Andrew answers customer questions every day over the phone or via Betterment’s mobile app.
In this article, we’ve provided three general reasons to consider rolling over to an IRA, but as an individual investor, your situation is unique.
The key is that when deciding whether to rollover a retirement account, you should carefully consider your personal situation and preferences.
Furthermore, depending on your situation, if you move your retirement assets to one provider, you can also improve the tax-efficiency of your taxable investments using asset location.
You can learn more about how Betterment’s Tax Coordination of IRAs and taxable accounts helps increase potential after-tax returns here.
One of the main benefits of an IRA is that there are often more investing options than a 401(k) or 403(b) plan.
If you contribute to your employer’s retirement plan, you might end up with only a few options chosen by the plan administrator.Betterment is the largest independent online financial advisor with more than billion in assets under management.