Retirement Answer Man Listener Questions: Should I Move My 401K into an IRA When I Retire?
Apr 1, 2026
They discuss whether to roll a 401(k) into an IRA and the key reasons for keeping or consolidating retirement accounts. Health insurance and budgeting for out-of-pocket retirement costs get practical attention. The limits of retirement planning software and how AI can act as a thinking partner are explored. The show also highlights meaningful travel stories and a seven-day experiential gift challenge.
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Episode notes
Cooking Class in Greece Created Lasting Memories
- Roger describes Doug's Greek cooking class with two non-English-speaking grandmas that turned into a hands-on, memory-rich experience.
- Doug and Roger both recommend taking local classes (cooking, blacksmithing, quilting) to create lasting souvenirs and shared stories.
When To Roll Your 401k Into An IRA
- Do consolidate 401(k) money into an IRA if there is no compelling reason to keep it in the employer plan, as Vern moved his Merrill Lynch balances to Schwab for simplicity.
- Consider inertia, Rule of 55 access, backdoor Roth complications, low-cost plan funds, stable value funds, and creditor protection before rolling over.
Model Health Costs With Realistic Defaults
- Avoid modeling worst-case max out-of-pocket each year; start with actuarial defaults and then customize based on your own usage, as Wayne from Maine learned after retiring at 61.
- Use a Health Savings Account and build it to cover your plan's maximum pocket exposure for true preparedness.
