Rollover 401k into Personal IRA following Job Change, Layoff, New Employer, Retirement

Rollover Options for Retirement Accounts

In today�s highly fluid job markets, employees change jobs on average every 5-7 years. That implies that the typical worker will have worked for 6-8 different employers over the course of a 40 year career. During stints with each employer, employees will build up assets in company sponsored retirement plans such as 401k�s or defined benefit pension plans. Employees are often faced with the question of what to do with these retirement account balances when they change employers.

If you are in this situation, please remember never to take a direct distribution payout from the plan unless under you are a) over the age of 59 � and b) receiving professional advice regarding the tax consequences and options. To avoid taxation and a 10� penalty on early distributions, funds generally need to be �rolled over� into another tax deferred account such as an IRA or a new employer�s qualified retirement plan.

Many individuals, unsure of the best course of action, will either leave money in their old employer�s plan or move the balance into their new employer�s plan. Yet, this may not be the best strategy. Individual retirement accounts (IRA�s) generally offer greater flexibility and more investment options than employer sponsored plans, while retaining the tax favored status of the employer account. Most importantly, your retirement assets will be entirely under your control!

If you are unsure how to proceed, perhaps Frontier can help. We will help you develop an investment plan which is compatible with your retirement goals, time horizon, and risk tolerance. We will recommend a diversified investment portfolio which strives to maximize return while minimizing risk through effective asset allocation. You can implement the recommended strategies on your own, or allow us to do it all for you � your choice.

To learn more about our retirement rollover, planning, and investment management services, please contact us for a free, no obligation, no sales-pressure consultation.

To read our worksheet on Rollovers of Employer Sponsored plans, click here.

Frontier Financial Planning and Capital Management is conveniently located in Somerville, NJ, the Somerset county seat. We are easily accessible to Somerset and Hunterdon communities including Hillsborough, Branchburg, Manville, Bound Brook, Basking Ridge, Bridgewater, Readington, Martinsville, and Bedminster.

HOME | NEWS | PARTNER LINKS | CONTACT US
COMPREHENSIVE FINANCIAL PLANNING | RETIREMENT PLANNING | INVESTMENT ADVICE | SMALL BUSINESS RETIREMENT PLANS | SMALL BUSINESS PLANNING & BENEFITS | ADVICE ONLY SERVICES | FREE CONSULTATION | ABOUT US