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How to Roll Over Your 401k
What now? Deciding what to do with your old 401(k).
Cashing out or leaving your plan behind:
Cashing out of your 401(k) plan is perhaps the most ineffective (and tempting) of your options as you move on to a new employer. If you choose to cash out 100% of the contents of your retirement account becomes taxable, and you are also hit with as well as a 10% penalty for early withdrawal if you’re under 59 ½ years of age.
Leaving your plan behind at your old employer can also be more expensive than you might believe: plan managers often charge annual fees of 2 or 3 percent just to hold your 401(k). Compare your 401(k) maintenance fees to those of a Rollover IRA to determine whether you are better off leaving your account where it is or updating its form and location.
Self-directed IRAs have several advantages over 401(k)s, among which are explained investment options, generally lower fees, and more liberal withdrawal requirements.
More information on IRAs can be found via our Retirement Planning page. Even if the fees are lower for an IRA other factors may make leaving your 401(k) where it is the most fiscally effectual decision. Just beware the dangers of leaving your money out of sight: do not forget to re-balance your portfolio periodically. Ensuring that your money is working for you in the most effective way possible is key to retirement success.
Joining your new employer's 401(k) plan:
Before you transfer to your new employer’s 401(k) plan, familiarize yourself with the investment options offered by the new plan. If your previous employer’s plan made a wide variety of mutual funds, bonds, and money market investments available, and your new employer does not make as many choices available to you, you may find the selection at your new company restrictive. Make sure you are up to date on the IRS’s contribution limits for 401(k)s as well and have ensured that their limits are compatible with your retirement planning strategy.
Distributions
Distributions by a specific beginning date (April 1st of the latter of the year that the participant retires or the year he or she turns 70 ½). Plan administrators are responsible for determining the minimum required distribution for each calendar year. However, if you find yourself switching employers before it is time to take advantage of your retirement plan’s benefits, you have several options. You can roll over your investments to an IRA, transfer them to your new employer’s 401(k) plan, or in some cases, you can leave them where they are.
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Smart Money Move:
Rollover your old 401(k) to a Place Trade IRA today! Rather than suffer through all of the disadvantages above and risk a lower standard of living than you had planned for your golden years, make the smart choice and take control of your financial future!
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Call us today at 919-719-7200 or 800-50-PLACE for more information!
Should I cash out my 401(k) retirement account or roll it over?
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For more information on setting up (configuring) your IRA / Retirement Accounts please follow this link.
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For more information on cashing in or taking your money out of your 401(k) or another retirement savings plan please review the official IRS website and visit: Cashing in your 401(k) instead of rolling it over? (Please be sure to check with your tax and/or legal advisor prior to making any contributions, withdrawals or other changes to your retirement account. Place Trade Financial, Inc. does not offer tax or legal advice and nothing contained herein should not be considered as tax or legal advice under any circumstances.) |
r Your 401k. 401k roll over Rollover your old 401(k) to a Place Trade Self-Directed IRA or Speak with one of our Experienced Financial Consultants to get Advice on your options or help develop a new financial plan.
Changing Jobs? What to Do With an Old 401(k)
Call us today at 919-719-7200 or 800-50-PLACE for more information! |
Changing Jobs? What to Do With an Old 401(k)
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What can you do with your 401(k) when you change jobs? Get straightforward advice about your retirement plan options so you can make smart decisions! How to Roll Over Your 401k. 401k roll over
Make smart decisions with your old retirement plans today so that you can maximize your potential and get the most of your financial future!
Rollover your old 401(k) to a Place Trade Self-Directed IRA or Speak with one of our Experienced Financial Consultants to get Advice on your options or help develop a new financial plan.
Please be sure to check with your tax and/or legal advisor prior to making any contributions, withdrawals or other changes to your retirement account. Place Trade Financial, Inc. does not offer tax or legal advice. Information provided by Place Trade is for educational purposes and should not be considered as tax or legal advice under any circumstances.
