401(K) Rollovers

    Who Qualifies            The Rollover Process            Common questions            More Information     

  Three Reasons People Roll Their 401k's

  1. Professional Representation 

    For liability reasons, many companies and their 401k providers can only give general 401k guidance, often leaving employees to look elsewhere for personal  and specific  investment advice.  Many individuals prefer the detailed planning, personal attention and service that they can obtain from a qualified financial advisor.  A financial advisor often assists individuals in understanding their retirement needs and setting appropriate retirement goals. It is not uncommon for a financial advisor to also educate and assist clients in understanding the various rules and regulations pertaining to their retirement account and Social Security benefits. 

  2. A World Of Choices

    The typical 401k available today has between 8 to 12 investment choices.  This may seem adequate, however not all of these may be appropriate for your needs. Many types of investments are often unavailable in the plan causing a gap in in your asset allocation strategy.  Due to the limited choices within most plans it is often not possible to invest directly in specific areas of the economy are performing well.  For this reason many investors choose to roll their 401k to gain access the thousands of choices available. 

  3. Control

    Some 401k providers now have restrictions as to how often you can make changes to your investments.  Many of them also charge a fee which can be as high as an additional 1% to discourage frequent transactions.  Rolling into an IRA removes these limitations and allows you to take total control of your investments.   



     Who Qualifies                                                  back to top    

  1. Over Age 59 1/2 

    If you are over the age of 59 1/2 you may be eligible.  Most companies allow you to roll your 401k at this time even if you continue to work there. 

  2. Have Left the Company or Early Retirement

    When you change jobs, terminate employment  or retire early from your current employer you are eligible. 

  3. Disability

    If you become disabled you may roll your 401k. 

  4. Retirement

    When you leave or retire early from your current employer you are eligible.




  The Rollover Process                                      back to top

  1. Establish an IRA Account 

    To roll your 401k assets you must first open an IRA account.  This can be accomplished by signing an IRA application.  You will need to know the name of the Trustee for your IRA and provide it to your 401k provider. 

  2. Transfer Funds

    Many of the 401k providers today allow you to give them rollover instructions over the phone.  It is important that you give them the name of the Trustee for the IRA that will receive the rollover. Once they receive your instructions, many of them will have a check to you in as little as 10 days. 

  3. Purchase Investments

    Once the transfer is completed you can begin to purchase your selected investments.


 Common Questions                                   back to top

  1. Are there any tax consequences? 

    If you qualify for a rollover you will not pay any taxes on the money that you deposit into the IRA.     

  2. Can I roll a partial amount?

    Yes.  The procedures are exactly the same.  Sometimes this is often done to purchase investments that are not offered inside of the current 401k plan.  However, many individuals prefer to have all of their assets in the same location and therefore roll the entire amount.    

  3. If I am still employed can I roll my 401k and contribute to it again?

    Yes. If your 401k is with your current employer you can distribute your entire 401k account balance into an IRA and continue to contribute to your 401k.  Many people do this so they can continue to receive the benefits of an employers matching contributions.



  More Information                                                                    back to top


There are other  things to consider when making the decision to roll your 401k.  If you would like 

    further information on 401k rollovers and distributions please contact us at (321)724-0727.