401k
Having lived and worked in the US you may have a 401k that you have left behind in the US. Regardless of whether you are planning to return to the US or spend your retirement years overseas, it’s a good idea to evaluate the options you have available to you.
Potential Advantages of Rolling Over a 401k to an IRA
Currency
It maybe that you have decided to spend retirement outside of the United States and as such your expenditure will be in another currency other than USD. An IRA with multi-currency capability would ensure your retirement savings are not eroded by currency fluctuations
Wider Investment Choice
Your 401k is likely to have a limited choice of investment options which in the main will be US mutual funds. A rollover to an IRA will provide an almost unlimited supply of investment choice which include direct equities and bonds as well as ETF’s
Lower Costs
Every 401k is different, and each has different charges. Different mutual fund charges as well as different charges for deferred members compared to active members. A rollover may provide lower cost options.
Control and Flexibility
With an IRA you control as much or as little income as you wish to take.
Succession Advantages
Typically, a 401k will pay out a lump sum to your beneficiary, typically a spouse. However, with an IRA you have the option of naming multiple beneficiaries.
