Home   Forums   401k   401k Rollovers  

401k Rollovers

401k Rollover

© Money-Talk.org

Free Rollover Information

If you would like to get professional 401k advice and a free copy of The Insider's Guide to 401k Rollover Plans, use our quick 401k rollover quote form...

401k Rollover Request

Whether out of necessity or for convenience and flexibility, a 401k rollover is worth considering.

After leaving an employer, many people fail to make the necessary arrangements for their 401k funds before withdrawing their money, resulting in unneccessary penalties. If you're in-between jobs, layed-off or terminated, or moving to a new job with no retirement plan you may want to rollover your existing 401k account funds into a traditional IRA (individual retirement account) to avoid taxes and early withdrawal penalties associated with direct cash disbursements. Avoiding this unnecessary additional income tax and keeping your money invested also allows the maximum tax-deferred growth of your 401k retirement funds. (401k rollovers into Roth IRAs cannot be done directly, but funds may be subsequently transfered from a traditional IRA to a Roth IRA. Beginning in 2008, a rollover from a 401k to a Roth IRA will be allowed, subject to income restrictions.)

Although plan participants can usually leave their existing 401k account in place after gaining new employment, selecting your own retirement plan may provide for more options that match your investment strategies to help you reach your retirement goals. Some people choose a 401k rollover account just for the wide range of investment choices offered, and more control over who is managing their retirement money. If you've worked at multiple jobs and have two or more 401k accounts, you can utilize a rollover to combine them all into a convenient single retirement account.

All 401k rollovers are tax and penalty free, however you must have encountered one of the following events in order to enact a rollover: termination of employment; retired; permanent disability; death; or termination of the qualified plan. Only in rare circumstances will a plan administrator allow a rollover by an actively-employed individual.

To receive a 401k rollover plan from a licensed local professional and a free copy of "The Insider's Guide to 401k Rollover Plans " and a referral to a licensed local 401k professional use our rollover quote form.

401k Information | 401k Contribution Limits | 401k Catch-up Payments
401k Early Withdrawal Penalties | 401k Loans | 401k Rollover