Roll over 401K to an IRA
I read somewhere that your 401K is exempt from law suits. If I move the money to an IRA, will that change? It seems people are able to hire a lawyer and file suit for almost anything. Thank you so much for all you do for so many people.
Terry Says
Please read this article for reasons to roll from an old 40l(k) into an IRA — a much wider choice of investments, especially as you become more conservative as you age.
But yes, in many states an IRA is an asset that could be attached in a lawsuit, vs a 40l(k) which cannot be distributed in a lawsuit.
I guess it is up to you whether you fear exposure to a bear market in your 40l(k) which has no place to hide, or whether you feel more vulnerable to a lawsuit.
