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401(k) Rollovers
401(k) Rollover to IRA
DFP facilitates rolling over an old retirement savings plan from a former employee. When an employee is laid off, changes companies or retires, it is often times recommended that the employee roll the money out of their 401k plan and into a Rollover IRA.
By rolling the proceeds into an IRA, the employee is not subject to any tax consequence or penalties and the account maintains its tax-deferred status. In addition, the owner of the account now has the freedom from restrictions that may have been present in the old 401(k) plan and they now have more flexibility to choose the investment structure, asset allocation model and fee structure for their hard earned savings. This same concept holds true for 403(b) and 457 plans as well.
Employees interested in rolling over an old 401(k) plan should consider the risks, fees, time horizon and their financial goals before proceeding with a 401(k) rollover. Your financial advisor at DFP can assist you in this process by helping you understand the benefits, risks, fees and process for rolling over your old 401(k). Individuals interested in a 401(k) rollover should also consult a qualified tax professional prior to initiating a 401(k) rollover.
