401k Rollover / IRA


Changing jobs or retiring? You have several choices or options for deciding what to do with the money in your employer-sponsored retirement plan. In today’s complex investment landscape you are consistently faced with the challenge of successfully investing, preserving and growing your hard earned retirement savings.

Simplify your finances by bringing your old 401(k)s and IRAs together, in this way you can manage your retirement savings more efficiently. Choosing an IRA rollover can give you the following benefits:

  • Greater flexibility and Control of investments (stocks, bonds, or alternative investments)
  • Opportunity to simplify your accounts in one place
  • Some investments can provide guaranteed lifetime income options
  • You can move your assets to a future employer’s plan
  • More flexible distribution options including taking distribution out prior to age 59 1/2 (SEPP – IRS 72(t))

We would welcome an opportunity to meet with you to review your current situation and assist you in evaluating your retirement plan to see if it advantageous to rollover to an IRA . Please feel free to contact us by email or calling us at 858-658-0600 to discuss 401k rollover and IRA rollover in San Diego.

How to decide if a rollover is right for you? Consider the following factors

* Restrictions, penalties and taxes may apply.  Unless certain criteria is met, Roth IRA owners must be 59 1/2 or older and have held the IRA for 5 years before tax-free withdrawals are permitted.  Please consult with your tax advisor about your situation prior to executing any strategy.
Rollover to an IRA

Advantages:

  • Continued tax-deferral
  • Greater flexibility and Control of investments (mutual funds, stocks, bonds, annuities or alternative investments)
  • You can simplify all your accounts in one place
  • Could stretch assets across generations
  • If completed correctly there this is a non-taxable transfer (rollover)
  • The ability to withdraw penalty free for a first time home purchase or qualified education expense.
  • More flexible distribution options including taking distributions out prior to age 59 1/2 (SEPP – IRS 72(t))
  • You can add to your IRA either on a deductible or non-deductible level.
  • investments can provide guaranteed lifetime income options.

Disadvantages:

  • You can’t borrow from your assets
  • If you have a loan it will need to be paid back prior to being rolled over, or the loan could be considered a taxable distribution and subject to taxes and penalties.
  • Some investment choices in a 401(k), such as a non public company stock or specific fixed account may not be available.
  • If appreciated company stocks are in your plan, tax advantages may be lost if placed in an IRA. (NUA – Net Unrealized Appreciation)

Remain in employer-sponsored plan

Advantages:

  • Some investment choices in a 401(k), such as a non public company stock or specific fixed account may be available only in your current plan .
  • May provide additional asset protection from creditors
  • Are over age 70 ½ and want to defer your required distributions
  • Stopped working for that employer by at least age 55 and are not yet 59 ½, need to withdraw funds for an immediate need, and don’t want to incur an early withdrawal penalty

Disadvantages:

  • You’re limited to the plan’s investment options
  • Your future contributions are restricted or simply not allowed .
  • Loans may need to be paid back in full if your employment ends.
  • Limited distribution options prior to retirement or separation of employment.
  • May have hidden fees or costs
  • Death benefit distribution options may be limited.
  • May not have lifetime income guarantee options.

Transfer to another employer sponsored plan (new employer)

Advantages:

  • You can consolidate your assets in one plan
  • You’re may be allowed to borrow from the plan
  • May provide additional asset protection from creditors
  • Are over age 70 ½ and want to defer your required distributions

Disadvantages:

  • You’re limited to the plan’s investment options
  • May have hidden fees or costs
  • Limited distribution options prior to retirement or separation of employment
  • Death benefit distribution options may be limited.
  • May not have lifetime income guarantee options.

Securities and Advisory services offered through LPL Financial. A registered investment advisor. Member FINRA & SIPC.

Registered for Securities in the following states: AZ, CA, CO, FL, LA, MA, NH, NJ, NY, OH, OK, PA, TX, UT, VA, WI, CA, LA

Registrations Held: 07, 24, 63, 65

Insurance License in the following states: CA, FL, OH