Are You Ready to Roll Over Your 401(k)?

A 401(k) account is a great way to save for your retirement. With a 401(k) account, a piece of your paycheck can be put away each month, and your employer often contributes a matching sum (usually up to a certain amount) to help you boost your savings. Also, taxes on this money are not paid until funds are withdrawn from your account.

But, when you’re changing jobs, or you’re looking for a new job, it is essential to consider your options when it comes to this money. We can walk you through the big questions when it comes to your 401(k) and can help you weigh the options to determine what is right for you.

One of Your Best Options is to Rollover the Funds into an IRA

You can either transfer the funds to a Traditional IRA that you already have, or open a new IRA to receive the funds. There is no dollar limit on how much 401(k) money you can transfer to an IRA.

There are Many Reasons to Consider Rolling Your 401(k) into an IRA

  • You generally have more investment choices with an IRA than with a 401(k)
  • You can freely allocate your IRA dollars among different IRA trustees, and there is no limit on how many direct, trustee-to-trustee IRA transfers you can do in a year. With an employer’s plan, you can’t move the funds into a different trustee unless you leave your job and rollover the funds.
  • The distribution options may be more flexible with an IRA than with your 401(k).
  • You have more control over your investments the closer you get to retirement.

IRS Chart *


*This is a chart of what the Internal Revenue Service regards as permissible when rolling funds over from one type of retirement account to another. This chart is for informational purposes only and is not legal, tax and investment advice. Always check with a tax advisor before rolling funds between plans.

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