401(K) ROLLOVER

Leaving your retirement funds at your former employer.

Advantages
  • Convenience – Leaving your retirement dollars where they are can be an easy choice since it doesn’t require any action.
  • Low Fees – Fees that are passed on to employees by employer retirement plans are typically little to none.
Disadvantages
  • Limited Investment Options– Most 401(k) plans only offer a handful of investment options to choose from.
  • Self-Directed – You are responsible for managing your retirement money which requires time and knowledge. Many people benefit from receiving professional advice.
  • 401(k) Loans – Depending on the plan, you may be required to pay back any loans taken after separation from service, which may be sooner than you initially planned. If you need a loan, you may not be able to initiate one eithe

Wondering if you are making the right moves with your 401k?

Check out these strategies you can implement during employment, when preparing for retirement and post-retirement to make sure you get the most out of your 401k.

Move your retirement money to a new employer retirement plan.

Advantages
  • Simplicity – All of your former and current retirement contributions will be in one place and on one quarterly statement. Unfortunately, not all employer plans accept money from other retirement plans.
  • Low Fees – Fees that are passed on to employees by employer retirement plans are typically little to none. However, these fees can increase if that company no longer employs you.
  • New 401(k) Loans – If your new plan allows, you can take out a loan of 50% of the account value, or $50,000 (whichever is less), that must be paid back within 5 years.
  • Potential to Delay Distributions – You can delay your required minimum distributions (RMDs) until you retire, although your new plan can require you take distributions after you reach age 70 ½.
Disadvantages
  • Limited Investment Options – Most 401(k) plans only offer a handful of investment options to choose from. Your new 401(k) plan may also have inferior options to your previous plan.
  • Self-Directed– You are responsible for managing your retirement money which requires time and knowledge. Many people benefit from receiving professional advice.

We’re here to help you create clarity and confidence around your finances—starting with a no-obligation consultation.

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Move your retirement money into an IRA account.

Advantages
  • Wide Choice of Investments – IRAs can utilize the vast array of investment choices: stocks, bonds, mutual funds and/or ETFs
  • Investment Guidance – You can receive as much help and advice as you would like with managing your retirement assets to help you stay on track for retirement.
Disadvantages
  • Higher Fees – There can be annual account fees, transaction fees, advisory fees and higher cost funds (low cost funds designed for a 401(k) may not be available in an IRA)
  • Additional Accounts – Your retirement funds will be in two places instead of one and you will receive two statements.
  • No Loan Provisions – Regardless of the IRA type, loans are not permissible. This also extends to IRA based employer plans.

Ready to plan your retirement transition?

The decisions you make in the next few years will determine your retirement lifestyle. Let’s create a plan that gives you confidence in your financial future.

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