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I recently closed out a SEP IRA that was in a Money market and was charged $100 to close the account. Certainly seems outrageous for cutting a check out of a cash account. Dept of Labor said it seemed excessive as well, but there are no regulations on fees charged for closing out accounts. Our government not at work again as usual.

You can do your due dilligence by reading http:www.rolloverusa.com which will provide great information, tools, and local advisor resources.

http://www.RolloverUSA.com

I think this article is very limited in scope and focuses on fees only. And ultimately, many individuals do the same thing.

First of all, do you want to go to back to your former employer every time you want to take a withdrawal, loan, etc. and have to get their signature? In addition, do you want to have to have your spouse get the form notarized each time also?

If you pass away, most 401k plans administrators want the money out immediately so their is a bigger tax bite than if you took it out over five years or over the course of your lifetime. IRAs can do this (no such thing as a stretch 401k, but there is a stretch IRA).

Most 401k plans have limited fund lineups and don't have things like emerging markets, REITS, TIPS,yet alone ETFs. Can't get full diversity and an efficient portfolio when excluding asset classes

The stock market did 15% a year between 1984 and 2000. The individual investor did 5%! For an extra 50 to 100 bps, isn't is wor...(Read more of this comment)th to have somewhere with experience do this (so, what is the price of low cost anyway?) Like Warren Buffett says, "if you don't know jewelry, know a jewelery." (Show less of this comment)

decsatsv...OJ was able to continue living so well because he had annuities that were paying out, and annuities are difficult for creditors to attach to...that is why so many doctors use them as retirement vehicles...

As to the fees paid by a 401k...the funds used within a 401k are typically institutional share classes that do have lower expense ratios than those paid in a retail account. However, the funds are typically limited to mediocre performers versus what would be available to an individual invester. There are something like 26,000 mutual funds available in the world...you would be extraordinarily lucky to have even one of the 12-20 funds available in a 401k platform that was in the 1st quintile (top 20%) for its sector.

I rolled my old 401(k) and 403(b) over into a self-directed IRA. I then used the IRA to purchase land. The value of the land I purchased in April 2008 has tripled in the last year. I am so happy I took the money out of the old accounts, instead of losing money to the market I know I made a smart investment decision. However, management fees are not exactly cheap, but it is a minimal price I have to pay for being in complete control of my retirement money. Plus, the ROI of my investment will completely outweigh the fees, so I am not worried about it. One of the best decisions I ever made!

It is bothersome that costs are usually looked at as the ultimate factor in returns. The fact is, many (if not most)401k platforms don't offer alternatives like real estate, foreign bonds, emerging markets, commodities, convertibles etc. that a good advisor will use for true diversification. They also usually restrict the participant to few options in each niche that are often inferior. Flexibility can make a big difference. Costs matter but ultimately returns rule.

You forgot to mention a huge advantage of the 401K, especially in these times. It is exempt from seizure by creditors, while IRAs are not. That is why OJ continued to live in luxury right up until his latest criminal act forced a radical downgrade of his standard of living.

The main reason for rolling over your 401k is the flexibility that an IRA offers. As the above examples only had to do with mutual fund companies this fact is over looked. A rollover could go into CD's, stocks, bonds, etc and maybe some ETF's and mutual funds as well.

Not a very informative article - below the quality that is usually presented on this site

So what's your point? Should we or should'nt we rollover our 401(k)? What are the advantages and disadvantages?