Important Considerations Regarding 401(k) Accounts
Individuals who use 401(k) accounts to save and invest for retirement are typically able to take advantage of matching employer contributions, along with the same tax shelter benefits that are afforded to Traditional or Roth IRA accounts, depending on the specific offerings of the employer’s 401(k) plan. An employee also reserves the often-favorable option to rollover 401(k) funds to a consolidated IRA account when transitioning jobs from one employer to another.
This IRA rollover option frequently serves to increase investment options, thus enabling an investor, or their financial advisor, to construct a more highly-tailored portfolio with lower fund fees. It can also provide an investor the ability to manage retirement investments from a consolidated, holistic perspective that supports that individual’s financial goals, risk tolerance, and time horizon.
The following article from Forbes describes some important considerations regarding 401(k) contributions and rebalancing in the context of today’s investment markets:
https://www.forbes.com/sites/ashleaebeling/2020/04/07/401k-moves-and-mistakes-amid-covid-19/#45fabe4a1777
