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Is an IRA Rollover Ever a Bad Move?

By Dan Caplinger – Feb 2, 2014 at 7:27PM

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Doing an IRA rollover is usually smart, but there are some cases where you should think twice.

Most experts advise people to do an IRA rollover with their old 401(k) accounts after they leave their jobs. But is an IRA rollover ever a bad move?

In the following video, Dan Caplinger, The Motley Fool's director of investment planning, goes through a few situations where an IRA rollover might not be ideal. Dan notes that Franklin Templeton (BEN 1.94%), AllianceBernstein (AB -0.03%), Goldman Sachs (GS 1.30%), and other companies often offer cheaper class of mutual funds that would otherwise carry sales loads or higher fees outside a 401(k). Dan also talks about company stock and the special rules for 401(k)s that own it, as well as the importance of looking at overall fees to decide if your 401(k) is the best place to invest or whether an IRA rollover will help you more.

Dan Caplinger has no position in any stocks mentioned. The Motley Fool recommends Goldman Sachs. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Goldman Sachs Group Stock Quote
Goldman Sachs Group
GS
$386.15 (1.30%) $4.94
AllianceBernstein Holding Stock Quote
AllianceBernstein Holding
AB
$40.35 (-0.03%) $0.01
Franklin Resources Stock Quote
Franklin Resources
BEN
$26.81 (1.94%) $0.51

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