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I guess the more articles I read the more confused I get but I have some questions about what to do with your 401k when you retire. I have a 401k with Sir Charles Scwhab and would lie to know if it would be beneficial to take a percentage of my 401k say 33% and start an IRA. I know that I will save some money with the IRA cause of less maintenance fees but I am lucky cause in my 401k there is a Capital Preservation fund/Stable Value fund that is an option and I will park a great majority of there when the market goes south like 2002 and 2008. Any assistance would greatly be appreciated.
It depends on the plan whether you can make a partial rollover. After I retired, my 401k plan was all or none. You need to call hr or look at your plan documents to determine if partial rollovers are allowed. If allowed, then it is reasonable to do a partial rollover to reduce fees while maintaining access to a certain fund such as stable value. Be careful of attempting to market time. What you are looking for is the summary plan description.
Your 401k has a plan document that describes how the 401k operates. It lists the plan's funds, the rules for exchanging funds, taking distributions, and rules for vesting employer match and a bunch of other information about how your 401k plan works. This is a fairly good sized document. The Summary Plan Description (SPD) is the Reader's Digest version of the Plan Document. Generally the SPD will tell you all you need to know to participate in the plan. You should have been given a copy of the SPD when you joined the plan. Ask for today's version, it may be available on line.