You’ve probably heard that your 401(k) is a great investment for retirement. After all, a 401(k) offers a host of benefits: You’re able to get the company match, which is free money for you, if you contribute a certain amount. You can benefit from the power of compound interest through substantial market returns. Plus, many 401(k)s are low-cost for retirement savers.
Your options for what to do with your 401(k) during your working years are extremely limited, especially while you’re still working for an employer. But now that you’re retired, you have the option of either leaving your 401(k) where it is or moving it into an IRA. This generally raises two questions: Should you leave the money where it is, or move it? And what’s the upside of moving your retirement money into an IRA if a 401(k) offers so many benefits?
