IRA Rollover
Consolidate and protect your savings from previous jobs safely and legally
Service Description
When you leave a job in the US, your accumulated funds in a 401(k) or 403(b) are left behind, often losing value or accumulating fees. Executing an IRA Rollover allows you to move that accumulated money into an Individual Retirement Account (IRA) that you control, protecting it from market drops and avoiding taxes or penalties.
What is an IRA Rollover?
An IRA Rollover (or retirement account transfer) is a fully legal, IRS-approved financial procedure that allows you to transfer accumulated funds from a corporate retirement plan (like a 401k or 403b) from a former employer into an Individual Retirement Account (IRA) that you manage 100% personally.
Beware of the 20% Withholding!
If you request the money from your old 401(k) to be sent directly to your name in a check, the plan administrator is required by law to immediately withhold 20% of your savings for provisional taxes sent to the government.
The Solution: We help you perform a Direct Rollover. Funds are transferred directly from the former financial institution to your new IRA, preventing any tax withholding and avoiding penalties of any kind.
Benefits of Consolidating Your Former Accounts
Leaving your funds scattered in past jobs is usually disadvantageous. By transferring them to an IRA, you get:
- Absolute Control: You no longer depend on the rules or limited funds chosen by your former employer. You decide where to allocate your money.
- Fee Savings: Many old employer plans charge high administrative maintenance fees that slowly eat away at your savings over time.
- Capital Protection: You can channel your funds into indexed annuities that guarantee your accumulated savings never decrease, even during market drops or recessions.
- Financial Clarity: Consolidating multiple old accounts into a single monthly statement gives you a clear view of how much you have and how your wealth is growing.
"I had three different retirement accounts from my previous jobs in New Jersey. It was hard to track them down and I was paying fees on each one. Patricia helped me consolidate everything into a single IRA Rollover cleanly and transparently. Finally, I have order in my retirement."
How the Process Works
Location and acquisition of account statements from your old retirement plans.
Opening of an IRA account (Traditional or Roth) in your name.
Request for direct transfer from the former administrator to your new IRA.
Asset allocation into safe financial vehicles matching your retirement profile.
Frequently Asked Questions
What happens to my 401(k) if I change jobs?
You have 4 main options: leave it with the old employer (if allowed), transfer it to your new job's 401(k), cash it out (subject to a 10% penalty and taxes), or transfer it to an IRA via an IRA Rollover (the highly recommended path to retain control and growth).
Do I have to pay taxes to perform an IRA Rollover?
No, as long as it is done as a 'Direct Rollover' (institution-to-institution transfer). The money maintains its tax-deferred status and there are no penalties.
Advisory & Integrity in New Jersey
We understand our community's needs. We solve your doubts with clarity and total confidentiality.