What to do with 401(k) from previous employer?

Parent Cafe
41

<p>The difference between them are:</p>

<p>Previous Company 401K, Cannot borrow from it, Limited investment options to choose from.
Brokerage IRA, Cannot borrow from it, Can invest only in general investment instruments, stocks, bonds, options, mutual funds.
Current Company 401K, May not borrow from rollover, even if you can borrow, interest rates are set by the company, Limited investment options.
Solo 401K, Can borrow from it and you set the interest rate, flexible investment options including real estate.</p>

42

<p>There is some guidance on 401k loan interest rates–IRS safe harbor rate is prime plus one</p>

<p>This was what we recommended our clients use. (Former 401k admin here)</p>

43

<p>Confirmed with the agent that RDM from your current employer active 401k is NOT required after 70. So, if you are working and contributing to employer 401k, you can completely avoid taking 401k money if you roll all previous 401k to your current employer 401k.</p>