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Making Smart Rollover Decisions

January 25, 2023

Rolling over the assets in your workplace retirement plan to an IRA can be a great move. IRAs typically offer more investment choices while allowing you to continue accumulating earnings on a tax-deferred basis.

However, making a rollover mistake can have a dramatic impact on your income in retirement. For example, if you personally receive the funds from your 401(k) or other workplace savings plan and fail to move them into an IRA within 60 days, your assets will lose their tax-deferred status. You may also have to pay a penalty of 10% or more.

Before deciding whether to retain assets in a 401(k) or rollover to an IRA, consider these factors:

  • Investment options
  • Fees and expenses
  • Services
  • Withdrawal penalties
  • Protection from creditors and legal judgments
  • Required minimum distributions
  • Possession of employer stock

Clearly, it’s important to handle your hard-earned retirement savings with care. Please reach out if you have any questions about how to initiate an IRA rollover or would like to discuss the advantages of consolidating your retirement assets in one easy-to-manage account. 

Before deciding whether to retain assets in a 401(k) or roll over to an IRA, an investor should consider various factors including, but not limited to, investment options, fees and expenses, services, withdrawal penalties, protection from creditors and legal judgments, required minimum distributions and possession of employer stock. Please view the Investor Alerts section of FINRA website for additional information.