Should I Rollover My Dormant 401(k)?

401(k)s and IRAs have many unique features that may be meaningful to your client depending on their situation. The decision involves a discussion that is about more than just fees and investment selection.

To help make this easier, we have created the “Should I Rollover My Dormant 401(k)?” flowchart. It addresses some of the most common issues that should be considered before doing a rollover:

• Common IRA and 401(k) features and differences
• Issues involving Net Unrealized Appreciation
• Distribution options based on your age
• Taxes and penalties in an IRA vs 401(k)
• Impact of a loan in a 401(k) if a rollover occurs
• Hardship Withdrawal
• Systematic income

Updated for 2020 (including The SECURE ACT)