Your account might contain a lot of company stock that you're not allowed to switch into mutual funds. That's a risky position. With an IRA, you could diversify. The fees come directly out of the plan, so you might not realize how much you pay, Stephen Butler of Pension Dynamics in Lafayette, Calif., told my associate, Dori Perrucci. Pa. An IRA would be a better choice.
Slow withdrawals allow more money to stay in the plan and grow tax-deferred.
Under new IRS rules, when children inherit an IRA they, too, can stretch out the withdrawals over their expected lifetimes. That avoids tax withholding. Your company or the IRA will tell you how to do it. But think carefully about your own investment skills before deciding to manage your money in a brokerage account. Serious money is safer in diversified mutual funds.