Ask an Advisor: What's the Best Way to Handle My Retirement Account After I Retire?

Group 1 - The decision to transfer retirement accounts such as pension funds and 401(k) should be considered carefully, weighing the impact on the overall retirement plan and convenience [1][2] - For pensions, retirees typically have the option to take a lump sum or monthly payments, and the choice should be made based on overall income sources rather than just transfer considerations [3][4] - Transferring a pension lump sum into an IRA allows for tax-deferred growth and better tax management, while taking it in cash would incur immediate taxation [4] Group 2 - Transferring a 401(k) to an IRA can help avoid maintenance costs associated with employer plans, which may be passed on to employees [5][6] - It is important to compare fees between the current 401(k) plan and potential IRA options, as some plans may have higher expense ratios [6] - Rolling a 401(k) into an IRA can provide greater flexibility and a wider range of investment options, depending on the chosen brokerage firm [7] Group 3 - The "rule of 55" allows penalty-free withdrawals from a retirement plan for those aged 55 or older, which is beneficial for early retirees [8]