Robin Solomon Quoted on 401(k) Rollover TipsPDF
Robin Solomon was quoted on 401(k) plan fees and their impact on an individual’s decision to roll over his or her account, in a March 22, 2016 article called “Rollover Tips for Those with Money Still in Former Employer 401k Plans” by Christopher Carosa.
Economies of scale represents one of the biggest advantages in staying with an old firm’s 401k plan, particularly with retirement plans for very large firms. These economies of scale can sometimes lead to negotiating lower fees that are simply not available elsewhere. Robin Solomon, a Benefits and Tax attorney (partner) at Ivins, Phillips & Barker in Washington, D.C. says, “The #1 rule of thumb when deciding whether to roll your money into your current employer’s 401k plan or an IRA is: Does the current employer or IRA offer better and cheaper investment options? If not, think twice before executing a rollover. In many cases, the funds available through an IRA will charge higher fees than the former employer’s plan. Higher fees will erode your investment return over time.”
Solomon says, “I would generally advise individuals: Don’t automatically roll over your account to an IRA when you leave a job. In many cases, the former employer’s plan will offer lower fees than an IRA. Lower fees will ultimately boost your rate of return. Employer plans generally offer a healthy mix of investment options as well.”