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Should I Do A 401K Rollover?

Freeman Owen, JrMy name is Freeman Owen, Jr. I’m the CEO and the President of Financial Sources, Inc. Since 1979, I have been helping those individuals preparing for retirement who are concerned about outliving their resources. And, my approach is simple. I explain, through analogies related to your situation, the financial information that can set you on the path to income-for-life. Contact me for a no-obligation, free consultation to review how you are building a nest egg. I specialize in financial strategies for Baby Boomers and Retirees.
Licensed in MD, DC and VA

There are 4 things you can do to protect your 401K :

As a consumer, you have to be smart about your money and know how to protect it. When changing jobs, what should you do with your 401K?

1. Keep the 401K money into the old employer’s retirement fund
There may be the option to keep your money in the old employer’s retirement fund, however, you can be certain that it will cost your maintenance fees that can dig into your future financial wealth. If you have changed jobs numerous times over your employment career, you might find yourself with many different 401K accounts with different employers. Each 401K account you have that stays with your old employer will carry a maintenance fee. Multiply that by multiple employers and you’re bleeding out your retirement dollars.

2. Do a 401K Rollover to the new employer
If your new employer offers 401K option, you might consider rolling over your 401K account to the new employer’s retirement account. However, this option is only available if the employee has another job offer before leaving their current employer. And, if the new employer has an acceptable 401K plan. Rather than doing a 401K rollover, it might be a wiser decision to do a 401K rollover to an IRA (Individual Retirement Account).

3. 401K rollover to an Individual Retirement Account (IRA)
For you who want to protect your retirement nest egg, you’ll want to continue having a compounding, tax-deferred retirement plan in action. Doing a 401K rollover to IRA works like this: Once in 12 months, the IRS allows you to do a distribution of your 401K plan ( reported on the IRS form 1099-R). Once you have received your  money, you’ll have 60 days to contribute it into a new retirement plan. This deposit is reported on IRS form 5498.

4. Resist The Temptation To Take The Cash
Cashing out a 401K when leaving a job is an unwise move for any employee. Besides the loss of employer contribution matching, there are taxes and penalty fees for cashing out your 401K . Instead, opt for a IRA.

Contact Me Today!

I offer a no-obligation, free consultation to review your retirement strategies for keeping your money safe for Baby Boomers and Retirees. Licensed in MD, DC and VA. If you have money in 401K in one or multiple accounts, you’ll want to take action to keep it all together. I want to help you safe guard your retirement dollars!

*Your privacy is important to me. Therefore, I do not sell or share your personal or contact information with anyone.

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Upper Marlboro, MD 20772
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