Avoids current federal income tax and tax penalty. More investment options. Still eligible to roll over assets to new employer's plan. Cannot take advantage of favorable tax treatments like income averaging. 2 Certain investment options in your employer's plan may not be available in an IRA rollover.
Some companies allow new employees to roll over proceeds from former employer s plan.
Assets remain tax deferred. Avoids current income tax and tax penalty. Limited investment choices. Limited access to assets. New restrictions possible.