“Can you help me roll over my old 401(k)?”
It’s a question that comes up often, but the answer isn’t always simple. Many of our clients come to us with old 401(k), 403(b), 457 and Simple IRA accounts from previous employers. Some even have multiple IRA accounts, the result of past rollovers. Other clients leave behind retirement plans when switching jobs or retiring.
Every Situation is Different
It’s important to have qualified professionals to help you decide on what to do with your old 401k, IRAs and similar retirement accounts. Whether you are changing jobs, entering retirement or simply wanting to consolidate your accounts, we can help you with each step of the rollover process.
There are a few options for dealing with an inactive qualified (retirement) account including:
- Rollover the account into a self-directed IRA account, such as a traditional IRA.
- Rollover the account into a new employer-sponsored plan, if allowed under your current plan’s rules.
- Rollover the account into a self-directed IRA account, then convert all or a portion of the funds to a Roth IRA account (after careful tax analysis).
- Leave the account at the current custodian and bring your investment options in line with a comprehensive portfolio strategy.
Not Always Best to Rollover
Despite popular belief, it is not always best to rollover an old employer plan to an IRA.
Certain plans offer favorable investment options or have special tax provisions (the North Carolina employees’ Bailey provision, for example), meaning it could benefit you to leave your account at the current institution rather than combining the funds into another account. Other retirement plans have specific rules on the timing of rollovers. You may read more about those rules by clicking here.
Making the decision on whether or not to rollover is an important one and shouldn’t be initiated without taking your entire portfolio into consideration. Feel free to contact us to schedule an appointment to review your financial picture. We’ll work together to develop a plan which will help determine if a rollover is the best choice for you.
We have experience in dealing with many different custodians when it comes to the rollover process. For our investment management clients, part of our service is to request and complete paperwork for you while monitoring the rollover process and realigning your portfolio during the transition.