When you change jobs, retire, or simply want more control over your retirement savings, a rollover may be the right choice. At Atlas Financial Advisory Group, we help you navigate the rollover process and make informed decisions about your retirement accounts.
What is a Rollover?
A rollover is the movement of funds from one retirement account to another. This typically involves moving money from an employer-sponsored plan (like a 401(k), 403(b), or pension) to an Individual Retirement Account (IRA).
Why Consider a Rollover?
More Investment Options
Employer plans often have limited investment choices. An IRA typically offers a much wider range of investment options, including stocks, bonds, mutual funds, ETFs, and more.
Consolidation
If you've worked for multiple employers, you may have retirement accounts scattered across different providers. Consolidating into a single IRA makes it easier to manage your money and track your progress.
Better Control
With an IRA, you have more control over your investment decisions and can work with an advisor of your choice.
Potentially Lower Fees
Some employer plans have high administrative fees. Depending on your situation, an IRA rollover could reduce your overall costs.
Estate Planning Benefits
IRAs often offer more flexibility for naming beneficiaries and passing assets to heirs.
Types of Rollovers
Direct Rollover
The funds are transferred directly from your old plan to your new IRA. This is generally the safest and simplest method, with no tax consequences if done correctly.
Indirect Rollover
You receive the funds and then deposit them into an IRA within 60 days. This method has more potential pitfalls, including mandatory tax withholding.
Important Considerations
- Understand the tax implications before making any moves
- Consider whether you should roll over to a Traditional IRA or Roth IRA
- Be aware of any fees or penalties associated with leaving your current plan
- Don't forget about any employer stock with special tax treatment (NUA)