As you get older, you may start looking into the many ways in which you can stash money aside for retirement. A 401(k) rollover is a popular option for individuals who have been contributing to a 401(k) plan. When retirement savings are moved by means of a 401(k) rollover to an IRA, your investment choices will broaden. What’s more, you can continue taking advantage of tax-deferred growth on your savings. Even if you choose to leave your job, it is possible to keep the funds you have earned in one place as long as you carefully select the 401(k) rollover option that best suits your circumstances.
There are a few different ways in which you can make the most of the money you have already saved for retirement. While it is possible to cash out, this will usually cost you money, with a 10 percent penalty charge applying in cases whereby the person withdrawing is below the age of 59.5. A popular option for a 401(k) rollover is to roll over to a fidelity IRA. Another option is to rollover to a new workplace plan or remain in the old workplace plan. Speaking with a financial advisor will allow you to compare the pros and cons of each option side-by-side before making a decision.
Reasons Why You Should 401(k) Rollover to IRA
It can be confusing understanding whether or not you should initiate a 401(k) rollover to IRA, what with some people advising not to rollover and others saying that a 401(k) rollover is the best thing you can do. More investment options are available with an IRA and if you wish, you can contribute to both. Borrowing from a Roth IRA is acceptable, and generally, the rollover is free. Lower fees and more control make the idea of a 401(k) rollover highly appealing. If you have opened more than one 401(k) account, a rollover gives you a chance to consolidate and manage your investments.
If you need help initiating a 401(k) rollover, let the team of expert consultants at Goldco help you. Gaining financial advice before you start saving could result in long-term gains.