Retirement Rollover Basics

Retirement Rollover

retirement rollover

retirement rollover chart

Leaving your job because of retirement, termination or you found a new job and you don’t know what to do with your old retirement plan money? Is a retirement rollover possible? Should I do a retirement rollover? Then here are some things to think about.

1.       Should I leave my money with my old employer? – This is an option. You can choose to not do a retirement rollover. This really isn’t the case in a technical way. The company that administers the plan may do a retirement rollover for you with no problem. You may also be stuck in the retirement plan of your former employer. Make sure there are no additional fees or charges if you do this. Some plans require you to complete a retirement rollover.

2.       Complete a retirement rollover to your new employer’s plan. – This options is allowed by some plans and others do not allow a retirement rollover of funds from outside plans. There may also be fees associated with this retirement rollover.

3.       Take the money and run – Do a retirement rollover to your pocket. This is technically not considered to be a rollover. This means depending on your age you could have to pay penalties in addition to income taxes. This could be avoided if the plan is a Roth 401K or if you are over 59 ½. Check with your tax or investment professional.

4.       Complete a retirement rollover to a qualified account. – This can be done easily and maybe your best option. When you do a retirement rollover to an existing IRA by using your bank, broker or investment advisor you may be able to avoid all taxes and penalties. You will also get the personal attention you have been used to receiving.

Retirement rollovers are not difficult to accomplish if you follow your favorite uncle’s rules. Check with your tax or investment professional to determine which option best suits your situation.

Arnie Fontenot

retirement rollover