When you roll over a 401(k) into an IRA, you can keep retirement savings growing when you plan to switch jobs or retire from the 9-to-5 for good. This type of rollover can also confer tax benefits and give you more control over your investments.
A 401(k), of course, is an employer-sponsored retirement savings plan. In contrast, an IRA, or individual retirement plan, is a personal account set up at a brokerage firm or mutual fund company that the saver manages.
