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 rollover can go a long way to helping deliver peace of mind and a safer, more secure retirement future.
We can help you rollover your 401k or company pension to help you:
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.
You do not have to be held captive by your 401k or pension fund. You have options.
Can anyone do a 401k rollover? No. You must either be 59 ½ years old or older –or– you have left your place of employment.
What if I have a pension? 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. Other 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.
How hard is it to do a rollover? It’s easy. There are four basic things you need to do:
What’s the catch? 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.
Can I buy an annuity with my 401k or pension fund? Yes. You can rollover your 401k or a lump sum from a pension into an annuity without paying taxes (if done correctly, see above). Annuities funded with these retirement savings plans are considered “qualified” plans, where the insurance company will create an “IRA annuity” where you can directly deposit your funds.