Consolidating 401k ira
There are some potential downsides to consolidation, however.Obviously, you wouldn't want to combine your accounts into your 401(k) or an IRA rollover held at a particular brokerage firm or fund company if the investment choices are limited or just plain lousy.Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal.Investment Representatives are registered through CFS. The Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members.Then, after you sign up for the 401(k) offered by your new employer, you decide you'd like to move your rollover IRA into your new 401(k) plan.If your new employer's 401(k) plan accepts such transfers, you can go ahead with that plan.
Although instances of money being pilfered from 401(k) plans is certainly rare, they do occur.
Similarly, there are cases of employees having to wait a long time -- sometimes upwards of a year -- to get their 401(k) money after leaving a job.
Call me paranoid, but when I weigh the pros and cons of consolidation, I come out in favor of spreading my money around.
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For such guidance please consult with a qualified professional, information shown is for general illustration purposes and does not predict or depict the performance of any investment or strategy.