Comments on: Options For Your Money In Employer-Sponsored Retirement Accounts When Switching Jobs.

By: Weekly Dividend Investing Roundup - August 30, 2008 » The Dividend Guy Blog

Weekly Dividend Investing Roundup - August 30, 2008 » The Dividend Guy Blog — Sat, 30 Aug 2008 11:02:22 +0000

[...] Employee sponsored retirement account [...]

By: Debbie M

Debbie M — Thu, 28 Aug 2008 20:14:41 +0000

It’s hard for me to imagine a situation where I would not roll it into an IRA (eventually, after I got over my laziness). I suppose in some cases employers do negotiate lower fees. And I know they sometimes do have access to investments that are closed to new investors. And if it’s in a pension, you might be earning a guaranteed positive interest rate while the stock market is plummeting. But generally one’s options are so much greater in an IRA that it’s a no-brainer to me.

By: David

David — Thu, 28 Aug 2008 14:22:30 +0000

I agree – cashing out is a bad idea!

By: WealthBoy

WealthBoy — Thu, 28 Aug 2008 13:45:31 +0000

If you ask me, cashing out is probably the least desirable option, particularly if you have a large sum coming out of the account. You’re likely to get slammed hard on the taxes, not to mention the 10% penalty if you’re under 55. If I were to leave my current job, I probably would not roll it into an IRA. I would either leave it or take it to my new employer, depending on whether my new employer’s plan has more/better investment options. My current employer’s plan is really lacking in investment options for small cap and international funds (basically only a single fund is available for each).