As 3(38) advisors we help you set up and maintain your organization’s 401(k) with the least amount of liability. And we keep you up to date with changes in tax law and policy through our newsletters, forums and one-on-one meetings.

We are happy to answer your questions about 401(k) rollovers and other retirement savings vehicles.

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 GRAnderson Wealth Management to explain the details. We make it easy!

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. In fact, the self-directed nature of an IRA from a 401(k) rollover allows for greater diversification of investments in comparison to the restrictions of an employer-led 401(k).

Yes, 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. A GRAnderson Wealth Management Group financial advisor with expertise in retirement planning can explain the pros and cons, and help you make decisions that are right for you.

As a qualified fiduciary advisor (not a broker), your GRAnderson Wealth rep is committed to recommending the choices that are in your best interests. There are no flat fees attached to the work that we do for you.

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. A 401(a) is generally for non-profits, with a set amount for contribution. You might have a Solo 401(k) – formerly known as a Keough Plan – which is a self-directed fund set up for individuals and ideal for self-employment. A SEP is a simplified plan similar to an Investment Retirement Account through the employer. They are all likely to require a rollover at some point following severance from the workplace.

No! Rollover 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 some of the investment vehicles that I can use for my rollover?

The investment options are practically limitless, from traditional stocks, mutual funds, ETFs and bonds, to alternative investments such as REITs. Depending upon your proximity to retirement age, your risk tolerance for those investments might vary greatly, from aggressive to moderate to conservative. We can customize the portfolio and help identify the most appropriate investments to suit your personality and your plans.