Calculating Fees and Expenses

• Determining if you should stay put with your 401k requires some work with your calculator. Read over your 401k statement and analyze what the fees and expenses are within your plan. In some cases, your old employer may be paying for the administration costs. However, if you have a newer 401k and are not a former federal government employee, then you may be paying all of the fees and expenses yourself. So you need to investigate your plan thoroughly to determine your cost.
  
  

401k Plan Investment Options

• Many employer-based 401k plans offer investment options that are not available in a new IRA. For instance, there may be a well-managed mutual fund with a positive historical annual return that is closed to new investors. Another factor is that your 401k plan may offer investment choices such as lifetime payout annuities or Roth 401k conversions. Again, based on expense differentials and investment choices offered in an IRA versus your 401k will be factors in your decision.
  
  

Companies Fighting to Keep Your 401k

• With the baby boomers retiring companies are realizing that their 401k plans will not be as large in the future unless they are proactive. The reason companies want to keep your 401k funds is simple---the larger the pool of managed capital, the lower the expense charges are for the company. According to The Wall Street Journal, Congress helped companies by passing a bill in March 2010 that will allow investors to convert a 401k to a Roth 401k. This incentive coupled with investment choices will require you to evaluate the benefits of staying in your former employer's 401k plan.
  
  

Cost Versus Benefit

• Securing your retirement requires research, diligence and a little prayer.Comstock/Comstock/Getty Images
  
  One factor to analyze is that of diversification---the percentage of stock allocated to various industry sectors and fund types. Often overlooked is the fact that if you have other IRA or investment accounts and you leave your money in the 401k then your add diversification, as opposed to having your money in one particular IRA or investment vehicle.
  
  One cautionary note. If you are maintaining your 401k and a large percentage of your 401k is in your former company stock, it is wise to review limiting your exposure by selling a portion of that stock.