What are my 401(k) Rollover choices?
Our product choices are based on Annuities and the overall upside of index growth and fluctuations. The interest earned in our products cannot go down. Once you earn interest in our IRA Annuity, 401(k) Annuity, SEP IRA Annuity or Roth Annuity -it is locked in and cannot go down.
For as long as you have had a 401(k) with a mainstream brokerage house or through your employer, we are positive that you have experienced some form of loss. We do not want that to happen to anyone. Loosing money in any form is concerning. Far too many people have seen these losses as just part of the game, but it does not have to be that way. We are happy you are here and ready to make a choice for your future.
Qualifying Events for a 401(K) Rollover
Understanding all of your options. If you leave a job, there are typically four options:(1) Leave the money in your old plan, (2) Roll it into your new workplace plan, (3) Rollover to an IRA,(4) Cash out the plan or withdraw the balance.
- When and If to stay put: If your current plan has greater investment options, really low fees, and you don’t mind a potential loss of funds while getting two or more statements, go ahead and stay put.
- When to Rollover : You have access to your new retirement plan right away, like an Annuity that takes about 7 -21 days to process and your new plan offers more benefits and simpler choices than your old plan, it is fine to roll over the balance to a new account.
- How to Rollover: See all of your options from Annuities, to brokerage accounts, to even Gold IRA’s but know and understand the investments you are choosing. Some of these have a severe risk to loss of principal and overall account. Choose wisely through education and patience and we will help you with that. It is just paperwork.
- Do not cash out: Under no circumstances is it ok to cash out. You will end up paying tax on that money, plus a 10% penalty to the IRS if you are under the age of 59.5 If you cash out a Roth 401(k) only the earnings are subject to the penalty and taxes. If you are over the age of 55 there are some qualified early withdrawal options for you and are not subject to the penalty.
Moving your funds. If you decide to roll over your 401(k), you’ll just need to call us and we can get the process started by informing you on all of your options.
- Educate and Choose a plan: There are many options for 401(k) Annuities, IRA Annuities, SEP IRA Annuities, and even ROTH IRA Annuities. So read, educate and choose a plan that fits into when and how you want to retire.
- Open an IRA Annuity: Meet with us, go over the application, request a FBO Check from the old plan, or just do a authorization of transfer to fund the new account.
- Contacting your old plan: Once you have made your choice, you call the company that runs your old 401(k). Request a FBO(For the Benefit Of) Check made payable to you or the new carrier. You can also ask us the have an authorization of transfer form as part of the application where it is done for you to fund the account.
- Direct Rollovers: Gather all of the old account information for the application process and this is known as a Direct Rollover disbursement from the old account to finalize and deposit the funds into the new account. This is when you authorize your old plan to fund the new plan.
- Indirect Rollovers: You can elect to take a cash distribution from your old plan just to cash out the account and avoid fees. You will have 60 days to re-deposit those funds into a new account to avoid paying taxes and penalties.
Knowing the Difference between Qualified and Non Qualified Accounts
- Qualified and Non Qualified: Qualified Annuity plans are funded with pre-tax dollars. You can instruct your new employer to fund these accounts with a simple one page form. Non Qualified plans are funded with after tax dollars and it is ultimately up to you when to fund these accounts. These accounts have no limit to deposits of premiums and are used to maximize your retirement savings.