Your Financial Advisor Wants You to Roll Over Your 401(k) – Ask These 7 Questions First

Before rolling over a 401(k), compare fees, investment choices, tax consequences, lost plan features, and the advisor’s compensation. A rollover can be useful, but the details matter – Shutterstock

A financial advisor recommending a 401(k) rollover can make the move sound almost laughably simple: transfer the money, open the new account, pick investments, and carry on with retirement planning. But moving retirement money changes more than the account number on a statement, so the decision deserves more scrutiny than a quick signature and a friendly handshake. The Department of Labor specifically recommends asking why a rollover serves your interests and comparing your existing plan with the proposed IRA before moving the money.

That does not mean every rollover represents bad advice, either. An IRA can offer investment choices, services, or other features that make sense for a particular situation, but the important question involves what you gain and what you give up along the way.