Want to retire early? Top tips for getting there
7. Dont automatically roll your 401(k) to an IRA
If you are fortunate to be retiring when you are 55 or slightly older, dont automatically roll over your 401(k) into an IRA. A rollover is generally a good idea because you have access to a much broader range of investment options but most people overlook the fact that they can begin taking penalty free distributions from their previous employers 401(k) plan at age 55 but they cant take penalty free withdrawals from their IRA until they are age 59 and a half or older.