After retired, I wonder rollover 401k to a brokerage company IRA account a good ideal or not?
8 replies (most recent on top)
For more information on the 2026 tax changes, see this site: https://barberfinancialgroup.com/tax-rates-sunset-in-2026-and-why-that-matters/
OMG...These posts are hilarious...If you made it past 25 years you should know your way around 401Ks, Roll Overs, Roth Conversions and the such. No wonder this company is so distressed.
If the Tax Bracket goes up, then you pay in that bracket on more of your earnings, saving you in taxes. If the poster below meant the tax rates are going up then that is bad. But if the tax brackets are increasing (expanding), then that is a good thing.
Not sure what @gxe+1k9AOY8z meant, but the tax terms being used in this thread are rudimentary at best.
@gxe+1k9AOY8z Can you please explain why tax brackets increasing is a positive thing? I don't understand your logic.
Yes, it is a good idea as long as you are not younger than 59-1/2 and need to access your money. If you are between the ages of 55 and 59-1/2, you can withdraw without penalty from your 401K using rule 55. (You also can withdraw from an IRA using rule 72T, but the rules are more strict.) It is a good idea to move to an IRA at Fidelity, Vanguard , or Charles Schwab as there are thousands of investments to choose from . Another good idea is if you have an HSA, roll it into a Fidelity HSA. The Ford HSA company will start charging you a monthly fee if you keep it there. Fidelity has a no fee HSA. Fidelity's has the best HSA .
Correction to my post above. Tax brackets will increase 3% in 2026 (not 2025).
Can I convert rollover IRA (from 401k) instead of regular IRA to Roth IRA?
Rolling over the 401K to a firm such as Fidelity, Vanguard or Schwab gives you a much larger list of funds for investment vs. the limited choices Ford offers in the 401K plan.
Also, I am learning that tax brackets are supposed to increase in 2025 by 3%. And so investment people are advising that it may be best to start converting regular IRAs to ROTHs in 2022 - 2025 to pay less tax on the conversion before the 2026 tax increase comes.