Clients need help with complex financial planning matters such as efficient wealth transfer, tax and inflation risk, and sustainable income in retirement. Financial-planning experts Bill Cass and Chris Hennessey weigh in each week with a range of insights, tips, and legislative updates.
Are clients seeking more investment choice in a 401(k)?
Bill Cass, CFP®, CPWA®, December 4, 2013
Some 401(k) plans allow participants to transfer money while they are still working. If your plan provides for in-service withdrawals, funds may be transferred to an individual retirement account, which could provide access to more investment options and the ability to consolidate accounts.
Transferring funds out of a 401(k) could have some disadvantages, however, such as costs, loss of creditor protection, and inability to pursue certain financial planning strategies.