What problem are you trying to solve?
Before discussing a rollover, finish this sentence: “I want to change my retirement account because…” Your answer might be a service problem, an investment limitation, confusing paperwork or a desire for ongoing advice.
Write down the specific problem. If you only want better visibility, first ask whether online access can be restored. If you want advice, ask whether it is available without moving the account. If you want lower costs, obtain a written cost comparison before accepting that a transfer will deliver them.
Compare the real choices
FINRA's discussion of rollover decisions identifies investments, expenses, services, protections and other plan features as relevant considerations. Its older notice is useful for that general comparison framework; current tax rules must be checked separately.[1]
| Question to ask | Existing 401(k) | Proposed IRA |
|---|---|---|
| Can I use it from my country? | Get this plan's written answer | Confirm eligibility before initiating anything |
| What will I pay? | Request current participant costs | Request the complete proposed schedule |
| What support will I receive? | Describe the specific help needed | Identify who provides it and what it costs |
| Which investments can I actually use? | List the options relevant to your needs | Confirm availability for your residence |
| What could I give up? | Ask about features worth retaining | Ask which features do not carry over |
Another employer's eligible plan may be worth exploring if one is available and accepts the rollover. A foreign workplace pension should not simply be assumed to be an eligible destination for a U.S. rollover.
Do not judge by the headline fee
A comparison works best when both sides use the same account balance and time period. Ask for estimated annual dollar costs as well as percentages. Include any separate advice charge and identify which services it buys. A low advertised custody charge is not necessarily the full cost of the relationship.
Consider an illustrative comparison, not a market quote: an all-in annual cost of 0.30% on $100,000 is $300, while 1.00% is $1,000. The difference is $700 for that year, assuming the balance remains unchanged. A more expensive option might provide services you value, but that value should be explained rather than hidden behind the word “rollover.”
Check what might be lost
Some employer-plan features do not travel with money moved to an IRA. For example, an exception to the additional early-distribution tax may apply to a qualifying separation from service in or after the calendar year you turn 55; that particular exception generally does not apply to IRAs. Special rules can apply to certain workers.[2]
Tell your professional if you expect to need money before age 59½, hold employer stock or have a plan loan. Ask whether any of those facts changes the analysis. Avoid signing first and discovering the significance of a feature afterward.
Clear the residence and tax questions before the paperwork
Ask the receiving institution to confirm that it can open and maintain the proposed account for someone with your actual address and tax status. Ask your tax professional to distinguish a pre-tax rollover from a Roth conversion and assess the transaction in your country of residence.
Request a written explanation that answers three questions: why change, why this receiving account and why now? A useful recommendation should also explain the alternative of keeping your current plan.
Frequently asked questions
Is an IRA always cheaper?
No. Compare your actual plan with the proposed account and service arrangement. Do not substitute an industry average for your own documents.
Does moving abroad make a rollover urgent?
It does not establish a universal deadline. Identify any actual deadline in a plan or provider notice and have that specific issue reviewed.
Can I decide to keep my plan?
Yes, where the plan permits it. Keeping an account after reviewing it is a considered decision, not a failure to act.
If you want to explore professional help, request an introduction. The starting point should be a comparison of your choices, not a predetermined rollover.
Sources
Educational information only. My401k.International is an education and referral platform, not a financial advisory firm. It does not provide investment, tax or legal advice or manage assets. Availability and treatment depend on individual circumstances, account rules and applicable law. Consult appropriately qualified professionals before acting.