Reasons to Roll
May 19, 2023
When you leave your job or retire, you have an opportunity to manage your funds in an employer-sponsored retirement plan such as a 401(k), 403(b), or government 457(b) plan. Depending on the situation, you generally have four options.* The approach that typically gives you the most control over the funds is to transfer some or all of the assets to an IRA through a rollover.
Three out of five households who owned traditional IRAs in 2022 had executed at least one IRA rollover from an employer-sponsored retirement plan. These were the top reasons for the most recent rollover.
- 64% Did not want to leave assets with former employer
- 62% Preserve tax treatment of savings
- 61% Consolidate assets
- 54% More investment options
- 44% Required to take all assets out of former employer’s plan
- 43% Keep assets with same financial services provider
- 40% Use different financial services provider
- 30% Easier to roll assets to an IRA than to a new employer’s plan
*Other options may include leaving assets in the former employer’s plan, transferring assets to a new employer-sponsored plan, or withdrawing the money.
Source: Investment Company Institute, 2023 (multiple responses allowed)
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