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IRAs and 401K Rollovers

Individual Retirement Accounts (IRAs) are often the foundation of retirement saving and investing. This vehicle is popular because it receives a tax advantage. Everybody is eligible for an IRA. Traditional IRAs, Roth IRAs, SEP-IRAs, and Simple-IRAs have different advantages depending on your situation. For example, a small-business owner may be able to invest a significant amount in a tax-advantaged retirement plan.

When people retire or leave a company, they have the option of making a 401k rollover into a self-directed IRA. Often, this 401k rollover is one of the most important retirement decisions of all. Mistakes made here are like making mistakes inside the 20-yard line in a football playoff game. In other words, mistakes of poor investment choice, the wrong asset allocation, and no distribution planning are magnified.

Do not pursue an advertisement that says “rollovers made easy”. Do seek a strategy that emphasizes “rollovers done right”. The right way to make a rollover choice is to become informed. There are many ways to structure an IRA rollover.

For an initial consultation*, click here.

*The initial consultation is at no cost.

Nice to know:

  • Making the Most of Your IRA
  • All IRAs grow tax-deferred
  • Contributions to a traditional IRA may be tax deductible
  • Distributions from a Roth IRA may be tax free
  • SEP-IRAs and Simple-IRAs are used to give small-business owners a tax-advantaged retirement plan at low cost.
  • Normally, you must wait until age 59 ½ to receive IRA distributions without tax penalty
  • You may be required to receive distributions from your IRA at age 70 ½ to avoid tax penalty
  • If you are over age 50, you may be able to make an extra contribution to your IRA

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