Federal Regulators Caution on Rollover from 401k to IRA

Solo 401k Plan

U.S. securities regulators are examining what happens when investors roll their 401k balances into an IRA based on the advice of a broker.

The Financial Industry Regulatory Authority and the U.S. Securities and Exchange Commission are challenging broker practices for advising clients about these so-called rollovers.

Brokers should recommend a rollover only after thinking about several factors for the investor, such as low-cost funds available through some 401(k) plans and differences in fees between the two types of accounts. 

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