Straight To The Point:

401k rollovers are useful tools for allowing you more investment options and alleviating your tax bill. Learn how to complete a 401k rollover.

First Things First:

The Real Deal:

What Are The Advantages Of 401k Rollovers?

  • 10:45 – Your company 401k is typically managed by a custodian with limited investment options. Rolling your portfolio into your own IRA gives you more flexibility in how you manage your wealth. Don’t forget there are tax advantages that come with 401k rollovers. If you transfer your portfolio directly from a company-sponsored 401k to an IRA, there is no tax penalty. As an aside, it’s important to work with a professional. An independent advisor has virtually unlimited investment options at their disposal and can work with you to navigate the rollover process.

Explain The Tax Implications.

  • 14:40 – As long as you roll your old 401k over into an IRA, there is no tax penalty. “But what does rollover mean,” you ask. The term rollover is a bit of industry jargon. Basically, when you leave a job, your employer will require you to fill out paperwork indicating where your old 401k will go as you leave the company. Furthermore, it will indicate the type of account your portfolio will move to. As long as you move your wealth into a traditional IRA, there will be no tax implication. However, if you cash out, Uncle Sam will take his cut.

What If My Current Company Manages My 401k?

  • 17:11 – If you’re older than the magic age of 59 and 1/2, you can execute an in-service distribution. An in-service distribution allows you to continue working and investing into your employer’s plan while also rolling your funds out of that plan into a privately held IRA.

How Do I Determine Where To Roll My 401k?

  • 20:25 – It’s important you know you can self-manage your portfolio. However, an advisor working as a fiduciary can help you determine the best places to invest your wealth. Working together you can assess your level of risk tolerance and use that to help you manage your portfolio accordingly.

Beyond The Zone:

The host: Chris Patterson – EmailWebsite – Tax Free Retirement Toolkit – Call: 904-285-4489

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