401(k) Rollovers

Old 401(k)? We can help.

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Have an old 401(k)?

If you have a 401(k), 403(b), or profit sharing plan from a previous employer, you can handle it in one of four ways:

  1. Leave it where it is.

    You usually aren’t required to move your old 401(k) from your former employer’s plan. You may be able to leave it there. If you choose this option, you probably won’t get much advice or attention from them, and typically no one will adjust your portfolio unless you tell them to.

  2. Roll it into an IRA.

    We can open an IRA account for you and help you roll the money into it, avoiding tax consequences and penalties. I’ll walk you through the process from start to finish, and you pay nothing until we get to step four. Here’s how it works:

    1. We discuss your time horizon and financial goals, so we know how your money should be invested. (Complete the online risk assessment here.)

    2. We open an IRA account for you.

    3. I help you contact the previous 401(k) provider and execute the rollover transaction.

    4. Once the rollover is complete, we invest the money according to your needs. The ongoing management cost is simply deducted from your account on a quarterly basis, and you’ll see the charge reflected on your statements.

    As a client, you’ll get unlimited telephone or email support, and one face-to-face review meeting per year, where we evaluate your portfolio and make any necessary changes. Also, every client gets free access to our eMoney software where you can view your account any time, track your spending, visualize your complete financial situation, and determine your level of retirement readiness. Schedule a no-cost visit or phone consultation here.

  3. Roll it into another employer sponsored plan.

    Another option is to roll it into a plan with a new employer. In this case, you’ll only be able to choose from the limited number of investments available in the plan, and you won’t likely get advice on which investments are best for you. In addition, it’s often difficult to get specific, personal financial planning advice from the 401(k) company. The good thing though, is at least you’ll know where your money is.

  4. Cash it out.

    Especially in light of COVID-19, some people have need for additional cash flow due to job loss, or reduced income. In these cases, taking some or all of the money out of your account may make sense. There are tax consequences and possible penalties, however. I can help you navigate the pros and cons of the various options, and make the best decision for you.