Depending on the number of jobs a person has had, he or she may have multiple 401(k)’s from former employers. These “Left Behind” 401(k) accounts can be a nuisance, especially when it comes to the paperwork that is accumulated between the quarterly statements, disclosures and other propaganda. In addition, it is difficult to view and evaluate your overall portfolio to determine how you are doing, as the investment options are limited. Finally, the costs within some of these 401(k) plans can be excessive. For these reasons, if you leave a place of employment and you have the option to rollover the 401(k) plan to an IRA, it is often best to take that option. Roll baby roll! It is easy to do, and if done right, it will have no impact on your income taxes.
Not to be construed as tax or legal advice. Please consult a qualified estate planning attorney.