401k, rollover IRA: things to consider before your rollover

Conventional retirement wisdom tells us that when you leave a job, you should roll over your 401(k) to an IRA. Rollovers allow you to continue delaying taxes on your nest egg as it accumulates and avoid an early-withdrawal penalty. But if you have an especially good 401(k) with your old company, it may be better to leave your retirement money there or roll it over into your new company's 401(k).

Here's how to decide if a 401(k) rollover to an IRA is right for you.

1. Consider fees, all and every fee.

2. Scrutinize investment options.

3. Avoid transfer penalties.

4. Don't relocate employer stock.
An investor must withdraw all assets from a 401(k) account to take advantage of an Internal Revenue Service tax break for distributions of certain employer stock, known as net unrealized appreciation. But any assets other than employer stock won't be subject to current income tax as a lump-sum distribution if they are rolled over into an individual retirement account.

5. Weigh taking a loan.

6. Estimate your retirement age.

7. Review estate planning.

8. Save taxes

9. Plan Roth IRA conversions each year.

10.  401k has Qualified Retirement Plan Protection from Creditors but rollover IRA does not. Although IRA does have limited protection against bankruption.
Qualified Retirement Plan Protection from Creditors
The Employee Retirement Income Security Act (ERISA) of 1974 sets standards for employee benefit plans, including qualified retirement plans. Included in the law are provisions to ensure that plan assets are protected. For example, under ERISA Title 1, participant accounts are protected from garnishment, levy, or attachment by creditors.