401(k) Rollovers

That job is history … now salvage your retirement account!

401k RolloversBenefits abound in rollover to an IRA or other qualifying plan

When you left your place of employment, someone in the human resources department might have alerted you to the 401(k) account or other retirement plan that you had set up at some point. That 401(k) account (or pension, or 403b or 457b) no longer works the way it did previously, while you were still employed. You can no longer direct a portion of your salary for automatic deposit into that 401(k) account; and of course, if there had been some kind of “matching arrangement” with your employer, that match definitely goes away.

See the video sequel, focusing on the benefits of a Rollover IRA - Please click below to watch the ways in which you can organize your retirement funds and help solidify your future.

The HR expert might even have mentioned a “rollover.” Hopefully, you didn’t delay that decision; because until you take some kind of action, that old 401(k) essentially becomes a “dormant” account. The investments, which included limited choices within the 401(k) structure, still reflect changes in market values; but you can’t make portfolio adjustments, can’t buy and sell, and can’t help the account grow with the investment of additional, pre-tax earnings the way you did while employed.

Fortunately, it’s NEVER too late to trigger a rollover, from a 401(k) to an IRA or other qualified retirement account.

Yes, you can set up a new 401(k) at your new place of employment, and you can have multiple 401(k) accounts. But that gets a little messy with all the paperwork, especially come tax time.  The easiest, most efficient way to handle a dormant 401(k) is to convert it to a traditional or Roth IRA; and a retirement planning expert at GRAnderson Wealth Management Group (GWMG) can explain the pros and cons, helping you make the decisions that are right for you.

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What is a 401(k) Rollover?

Investors typically engage in a 401(k) rollover upon a change in employment status. The 401(k) rollover allows the investor to move funds from a 401(k) account into another qualified retirement account, such as an IRA, which has greater investment flexibility and options. Typically, the rollover is available with no penalty to the investor, assuming the transaction is made in a timely manner.  Ask us at GWMG to explain the details. We make it easy!

What are the benefits?

When you roll over a 401(k) into an IRA, you still enjoy the same kind of tax-free growth within the portfolio. And now you can move your money around, between investments, putting that money in the places that make the most sense for you in your particular time of life, within your tolerance for risk.

Are there other, similar roll-overs for other retirement accounts?

The 401(k) is just the most common type of retirement account offered at places of business, but there are others. You might also have a 403(b) or a 457(b), which is for governmental employees. They are all likely to require a rollover at some point following severance from the workplace.

Is there a maximum amount that I can roll over?

No! Roll over as much or as little of the 401(k) as you like, assuming you are within the guidelines of any mutual fund that you choose as an IRA investment.

What are the tax consequences?

If you do it right, there are likely to be no tax consequences whatsoever. The experts at GRAnderson Wealth Management Group focus on helping their clients to avoid these kinds of hazards.

401(k) Rollovers GRAnderson Wealth ManagementWe Can Help

The information on this page about 401(k) rollovers is provided by the folks at GRAnderson Wealth Management Group (GWMG), where retirement planning is a specialty. The financial experts at GWMG would be pleased to answer all your questions about 401(k) rollovers and other vehicles for retirement savings. Just call them at 303-228-3160, or complete the Contact Us form.

401(k) Rollovers GRAnderson Wealth ManagementGeneral 401(k) Information

For additional information about 401(k) accounts and rollovers, please check the following sources, then call GRAnderson Wealth Management Group with your follow-up questions:
Investopedia

IRS

Wall St. Journal

And for specific information about 401(k) sponsorship responsibilities, check this page within the U.S. Dept. of Labor

401(k) Rollovers GRAnderson Wealth ManagementGeneral 401(k) Management

You might be trying to establish a 401(k) program for your business; or your current 401(k) plan might need expert management, with the intention of improving performance. In either case, GRAnderson Wealth Management Group (GWMG) is waiting for your call. The experts at GWMG have set up 401(k) accounts just like the one you hope to have. Just call us at 303-228-3160, or
complete the Contact Us form