By Adam Shell, USA Today
For most working Americans, the savings vehicle of choice is a 401(k).
But a flood of retirement savings dollars moving from these employer-sponsored plans to IRAs suggests that retirees or workers nearing the end of their careers favor individual retirement accounts when it’s time to tap the cash they’ve amassed.
Older Americans are driving the trend, shifting their savings to take advantage of IRAs’ more flexible withdrawal options, as well as some other perks that make the accounts more attractive than 401(k)s as people enter their golden years. These one-time savers need to start accessing the money to pay living expenses and to generate a steady income stream once they stop collecting a paycheck.