Learn the answers to the 5 most important 401k Rollover questions to protect your retirement savings.
A “rollover” is a term for transferring tax-deferred retirement savings (such as money held in a 401k or Pension Plan) from one account to another. If it is done correctly, a 401k rollover can go a long way to helping deliver peace of mind and a safer, more secure retirement future.
If you are 59 ½, or have left your employer, you owe it to yourself to look into your 401k rollover options––especially if you are nearing retirement and looking to generate guaranteed lifetime income. Money held in a 401k is vulnerable to stock market loss, and it is also typically heavily weighted with your company’s stock, which exposes you to unnecessary risk. This is especially true in a company pension plan.
Have you recently left your place of employment? You should also consider your 401k rollover options. If this is the case, you may want to consider moving your balance to an IRA account.
If you have a pension fund, you may be able initiate a rollover as soon as you turn 59 ½ years old or when you’ve left the employer. Some employers require you to wait until you leave the company regardless of age. We can help you navigate your company’s plan rules to see if you are rollover eligible.
Whether you are retiring or switching jobs, you have 401K rollover options, such as:
The main “catch” is making sure you do your rollover right. Having the funds directly transferred (a “direct rollover”) from your old account to your new account without ever touching the money yourself is usually the best solution. If you have the check made out directly to you, you can face stiff IRS penalties unless you redeposit the fund in a qualified plan within 60 days – however, there are restrictions on 60-day rollovers you need to know. The forms can be confusing so be sure to contact us today. We’d be happy to walk you through the entire rollover process.
There are four basic things you need to do:
Anyone living near Dallas, Fort Worth or Houston can meet with our experts in person to discuss your 401K rollover. We walk you through the process and ensure it is completed correctly to protect your money.