Think About The Age 55 Rule

If you wait to leave your job until you turn 55 or later, you could start penalty-free 401(k) withdrawals. Nevertheless, if you roll the funds over into an IRA, you’ll be required to wait until 59 and a half to avoid the 10% early withdrawal penalty.

Keeps Costs Low

Look at the administrative and investment costs that come with your plan. You can look up the fees you’re paying on your annual 401(k) fee disclosure statement. You might be able to move your money into lower-cost funds within that plan.

You can even compare the fees, and investment costs in your 401(k) plan to potential IRAs.

Your employer might have negotiated low prices with the administrator, especially if you’re with a large company. But if your plan has high fees, you could find a more suitably priced IRA.