Check Capital Management

401(k): To Roll or Not to Roll, That is the Question

Job Changes, Layoffs and Your Investment Options

If you recently went through a job change or layoff, you’ve probably been anxiously considering your next move.  You have our sincerest sympathies, since your new situation likely came with little or no warning.

As you go through the transition process, it’s wise to research options regarding the hard-earned savings you’ve accumulated in your 401(k).  Every employer’s retirement account has slightly different terms and conditions.  For the most part, the options available to you that have the least likelihood of tax consequences include:

  • Keeping your investments within your former employer’s 401(k).
  • Rolling over the assets into your new employer’s 401(k), profit-sharing plan, or other option(s) offered.
  • Transferring your 401(k) savings into an Individual Retirement Account (IRA) and either getting professional help or self-directing the assets.

As the years march on and your retirement savings expand, it’ll feel increasingly prudent to research what the best decision would be.  Each option will affect the future value of your savings in a variety of ways.  These options include investment style and approach, available investment alternatives, and management fees and commissions.  The more significant the value of your retirement savings becomes relative to your overall net worth, the more important it is to be well versed in your decision and the more advantageous it becomes to have a highly experienced investment advisor assist you.  At the very least, a professional can help you understand the nuances of your choices and benefits, providing you with genuine perspective on an important aspect of your retirement.

Some of the reasons for exploring options:

  • My existing plan and my new employer’s plan provide few investment choices.
  • I’ve accumulated a fairly significant sum, which elevates my stress.
  • I no longer want to make investment decisions without the input of an expert.
  • I’m getting closer to retirement, so having a professional advisor increasingly makes sense.

The process of rolling over a 401(k) into an Individual Retirement Account (IRA) is relatively simple, and absolutely no tax consequences are triggered by this action when done right.

Whatever your personal circumstances may be, getting a professional opinion can be helpful.  Contact us to arrange a free consultation.

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