401(k) & IRA Rollovers

Take Control of Your Accounts

If you have changed jobs, or you are getting ready to retire, don’t lose track (or control) of your 401(k), IRA, or similar retirement account. We can help you explore all your options when it comes to rollovers, with an eye to tax efficiency, product performance, desired features, and long-term retirement goals.

We also encourage you to learn more about how some of the financial products we offer can stack up against an old IRA you may have sitting around, or cash you may currently have parked in a low-interest money market account. We are dedicated to helping you make the most of your finances, and achieve your personal goals.

Call us for a quote at (757) 515-2220 or choose a meeting time right here

What Should I Do With My 401(k) Money When I Retire?

Many people have saved money for retirement their whole lives in a taxable 401(k) or similar retirement account, but they don’t know what to do with their money once they actually retire. How will you take money out of their account to live on during retirement, without running out of money someday? Remember, you may be able to do a 401(k) rollover even at your current job starting at age 59-1/2. Let’s explore your options together.

Traditional versus Roth IRA Accounts

What is the difference between a traditional IRA versus a Roth IRA account? A traditional Individual Retirement Account is created with pre-tax money, while a Roth IRA is created with after-tax money. So which type of account you choose to open has to do with your tax situation and what your tax situation will be during your retirement.

Your Choices When It Comes to 401(k) Rollovers

1) You can leave the money with your former employer—if they allow you to do so. But remember than many 401(k)s are filled with high-risk investments that can lose value quickly during stock market drops. And many 401(k) plans have high fees and few investment choices.

2) You can take the money out and have a check sent directly to you. You will owe income tax on any amount withdrawn in that tax year (unless it’s already-taxed Roth 401(k) money). Your previous employer must by law withhold 20% of your taxable money for the IRS, and you have to account for it on your tax return in the year you withdraw the money. If you are under age 59-1/2, you will also owe a tax penalty.

3) You can take the money out and have a check sent directly to you to do your own rollover. This is called an “indirect rollover.” Again, your previous employer must by law withhold 20% of your money for the IRS. You only have 60 days to put all the money in a new account, so you’ll have to front that extra 20% for your new rollover account until it can be reimbursed to you later, or you will have to pay income taxes on that 20% holdback amount.

4) You can do a “direct rollover,” from institution to institution, dollar for dollar, with no tax impact on you until you begin withdrawing money. This is where we come in. We will show you your rollover options—including tax-advantaged options, and options to help you generate lifetime retirement income—and go through the pros and cons of each type of rollover account so you can make the best decision for yourself and your family.