By Sabrina Karl

If you left a job during the pandemic—or even years ago—and still have a balance in your former employer’s 401(k) plan, here are four smart reasons to add a 401(k) rollover to your New Year’s resolutions.

First, a primer. Rolling over your 401(k) simply means moving those investments and funds into a personal IRA account that’s linked only to you. You can even roll 401(k) assets from multiple employers into the same individual IRA.

A top reason to do this is that it significantly increases your control over the investments you choose and how much you’ll pay in expenses. In a 401(k), you’re confined to the plan’s menu of investments, as well as the sometimes hefty expenses and fees they charge.

Contrast that with a self-directed IRA at a brokerage, where you can choose from individual stocks and bonds, mutual funds and index funds, and ETFs. There will still be plenty of hands-off investment options for those who want easy investing, but you’ll be in charge of any investment—and fee—choices.

A second good reason to move into an IRA is that they are much simpler, with direct communication to you instead of a 401(k) middleman. Not only are the IRS rules for all IRAs identical, but communications come straight to you rather than through the employee newsletter or an agent assigned to the company.

Third, you may be able to make some money off your rollover. Numerous brokerages offer generous cash bonuses to new customers transferring funds, so it’s worth shopping around to boost your balance with the best bonus.

Lastly, holding your funds in an IRA enables better future options than are available to 401(k) plans, such as the ability to convert IRA funds to a Roth IRA, or take advantage of better estate planning options for your beneficiaries.