Is it better to liquidate a 401a or 401k?

[Guest AgentM]

I know it's bad business either way, but it must be done. I am not working at either of the places where these plans originated. I have one of each plan and was wondering if someone knows which one would be better to cash in.

Also...Am I right in thinking that the 401A is earning more interest..it's through a school district I used to work for in Michigan and earned 9.8% last year. Thanks!

[K2retire]

The answer depends on the investment performance in each account. The type of account (at least the 2 you mentioned) does not impact the choice.

[GBurns]

I doubt that there is a right or wrong answer since there is probably very little difference beyond source of contributions.

For me, the answer depends on control and accessibility.

The 401(a) might only be earning a higher rate now because of the investment choices made. Past performance is no indicator of future performance. So other features should be considered.