Consider implications of in-service distributions on financial planning

The availability of in-service distributions needs to be carefully assessed, as it could impact other financial planning strategies. Rolling over a 401K into an IRA for such distributions might hinder other strategies like backdoor Roth contributions. It is crucial to understand the implications before making decisions. Financial advisors recommend prioritizing steps in the financial order of operations, focusing on tax-free growth opportunities first before high income tax deductions, especially if the current 401K plan is not optimal.