If you decide a 401(k) rollover is right for you, we're here to help. Call a Rollover Consultant at
866-855-5635. One great thing about a 401(k) retirement savings plan is that your assets are often portable when you leave a job. But what should you do with them? Rolling over your 401(k) to an IRA (Individual Retirement Account) is one way to go, but you should consider your options before making a decision. There are
several factors to consider based on your personal circumstances. The information provided here can help you decide. Leave your money in your former employer's plan, if your former employer permits itChoosing this option means you don't have to make an immediate decision about where to move your savings. Your account stays subject to your previous employer's plan rules, including investment choices, costs, and withdrawal options.
Roll over your money to a new 401(k) plan, if this option is availableIf you're starting a new job, moving your retirement savings to your new employer's plan could be an option. A new 401(k) plan may offer benefits similar to those in your former employer's plan. Depending on your circumstances, if you roll over your money from your old 401(k) to a new one, you'll be able to keep your retirement savings all in one place. Doing this can make sense if you prefer your new plan's features, costs, and investment options.
Roll over your 401(k) to a Traditional IRAIf you're switching jobs or retiring, rolling over your 401(k) to a Traditional IRA may give you more flexibility in managing your savings. Traditional IRAs are tax-deferred1 retirement accounts.
Roll over your 401(k) to a Roth IRAIf you're transitioning to a new job or heading into retirement, rolling over your 401(k) to a Roth IRA can help you continue to save for retirement while letting any earnings grow tax-free.2
Take a cash distributionWhile withdrawing all of your money may seem like a good idea in the short-term, be sure you understand the consequences before you do. Money withdrawn will be taxable and subject to a mandatory 20% federal withholding rate. You may also face early withdrawal penalties.
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We're here to helpCan I move some money from 401k to Roth IRA?The allocation then can be split by the taxpayer to avoid taxable distributions. In short, the new rules allow you to get your after-tax 401(k) money into a Roth IRA and put your pre-tax money into a traditional IRA and not pay taxes on the distribution.
Should I move money from 401k to Roth IRA?Should I Convert my 401(k) to a Roth IRA? Converting a 401(k) to a Roth IRA may make sense if you believe that you'll be in a higher tax bracket in the future, as withdrawals are tax free. But you'll owe taxes in the year when the conversion takes place. You'll need to crunch the numbers to make a prudent decision.
Can I transfer my 401k to an IRA without penalty?Can you roll a 401(k) into an IRA without penalty? You can roll over money from a 401(k) to an IRA without penalty but must deposit your 401(k) funds within 60 days. However, there will be tax consequences if you roll over money from a traditional 401(k) to a Roth IRA.
Can I roll over money from Roth 401k to Roth IRA?For example, let's say you've had a Roth 401(k) for 10 years and you've also had a Roth IRA for five years. If you roll your Roth 401(k) into your Roth IRA, there's no problem. You've met the 5-year rule.
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