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Rolling Over Old Retirement Accounts

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As a Registered Investment Advisor, we can manage brokerage accounts, IRAs (Traditional, Rollover, Roth, and Inherited IRAs), SEPs, SIMPLEs, Individual 401(k)s, and Trusts.

I’m Ready to Retire. What Are My Options for My 401(k)?

As you approach retirement, you should consider your account options. You have 3 options; rolling your 401(k) into an IRA, leaving your 401(k) in your company’s plan, or cashing out.

  1. Rolling your 401(k) into an IRA typically provides you with access to many more investment options. Additionally, these funds will most likely have lower expense ratios. Your retirement account will also maintain its tax-deferred status.
  2. Leaving your 401(k) in your company’s plan may or may not be allowed depending on the plan’s rules. As mentioned earlier, you may be limited by the investments you can choose within the 401(k) plan. Leaving your 401(k) in your company’s plan will also maintain its tax-deferred status.
  3. Cashing out is typically the worst option and should be avoided. You will most likely face a 10% penalty if you are under 59 ½ years old. In addition, you will be required to pay ordinary income tax on the amount taken (if you do not deposit the entire account value into a qualified retirement account within 60 days).

More information about 401(k) options can be found here.

I Have a 403(b). Can I Roll My 403(b) Account into an IRA?

Yes. Retirement plans are an alphabet soup.  Examples of different plans include:

  • 457s
  • 401(a)s
  • Money Purchase Plans
  • DB Plans (Defined Benefit)
  • SIMPLE IRAs * (Savings Incentive Match Plan for Employees)
  • SEP IRAs ** (Simplified Employee Pension)

These types of accounts can all be rolled into a Traditional IRA:  Shoreline Financial Advisors can assist you with account transfers.
*you may only roll over after the account has been open for 2 years and you can only roll over once per 12 month period.
** you can only roll over once per 12 month period.
For more detailed information, contact your retirement plan administrator and view the IRS rollover chart. Shoreline Financial Advisors is here to help you understand your options.

Let’s talk about your retirement plan. Set up a free no pressure, no obligation meeting.
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This article was written by Shoreline Financial Advisors. To learn more about us, please visit our website.

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