Summary: Consider transferring 401(k) or 403(b) into Roth IRA for more investment options and flexibility.

From Yahoo Finance: 2025-04-18 12:01:00

When leaving a job, consider rolling over your 401(k) or 403(b) into an IRA or Roth IRA for more flexibility in investment options. Suze Orman recommends this move due to the wider variety of investments available through brokerage firms like Fidelity or Schwab, such as ETFs, individual stocks, and CDs.

Depending on the plan type, traditional or Roth, roll over your funds accordingly to avoid taxes on the full amount at the time of transfer. Converting to a Roth IRA during retirement may be beneficial as you’re likely in a lower tax bracket, potentially paying less in taxes compared to required minimum distributions later on.

Orman notes that managing investments post-rollover may be daunting for some. If comfortable with your current plan, it’s okay to leave the money where it is. Moving retirement savings into an IRA or Roth IRA provides more control, choices, and the ability to tailor investments to changing needs, offering a beneficial financial strategy for retirement planning.



Read more at Yahoo Finance: Why You Should Transfer Your 401(k) Or 403(b) Into A Roth IRA When You Leave A Job