Can My Retirement Account Be Rolled Into An IRA?
For the most part, yes – most retirement plans allow a former employee to roll their funds into an IRA after they’ve left their employer. 401(k)s, 403(b)s, 457s, SIMPLE IRAs*, SEP IRAs**, Profit Sharing Plans, Money Purchase Plans, and Defined Benefit Plans can be rolled into Traditional IRA accounts. Rollovers can be made in one of two ways – direct or indirect. In most cases, it is best to do a direct rollover.
For more information and to view other options, please view the IRS rollover chart.
How Do I Rollover My Old 401(k)?
We will walk you through the account rollover process and answer any questions you have. Typically, you will only need to provide a recent account statement. After your account is open, we take it from there. We will execute the strategy we developed together, while monitoring your investments and cash levels. You will have 24/7 online access to your accounts and receive regular reports. We ask that you come to us with questions and let us know about big changes in your life.
Will My Rollover Be Taxed?
Most rollovers are direct rollovers. Direct rollovers are not a taxable event. In a direct rollover, your previous plan administrator will make a payment directly to your new IRA or retirement plan. When your 401(k) has been successfully rolled over into your new IRA, it will remain a tax-deferred retirement account.
In an indirect rollover, a check is made payable to you, the former employee. When you receive the check, you must deposit it in the new IRA within 60 days. Generally, your employer withholds 20% of your account balance in this process for taxes. If the total amount is deposited in the new IRA account, the rollover is not a taxable event. The 20% withholding will be returned to you as a tax credit.
*SIMPLE IRAs may only be rolled over once in a 12 month period and the SIMPLE IRA must have been open for 2 years
**SEP IRAs may only be rolled over once in a 12 month period
Learn more about our investment management process.
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