Episode #7: 401(k) Rollovers

Today’s Prep:

401(k) rollovers are useful tools. However, they’re tricky to execute. Get a proper understanding of a rollover and whether this strategy is right for you.

(Click the featured times below to jump forward in the episode)

Equipping Points:

[1:20] – Don’t Leave Your 401(k) With Your Old Employer.

  • Don’t leave your 401(k) with your old employer. Instead, consider rolling it over into an IRA that is privately managed. 401(k) rollovers give you more control over your investing strategy. Most companies don’t have many investment options in their 401(k) plans, and they don’t offer you much investing advice. 401(k) rollovers also help you get financially organized. You don’t want your money spread out amongst multiple accounts with several past employers.

[3:41] – Tax Implications Of 401(k) Rollovers.  

  • Whether you properly roll your 401(k) into a new account will determine your tax bill with Uncle Sam. 401(k) rollovers are tricky, and if you don’t get them right, you’ll be left with a hefty tax burden.

[4:54] – What If I’m Still At My Company? 

  • If you’re reading, and you’re interested in a 401(k) rollover, but you’re still with your company, you still have options. You can conduct something called an in-service distribution. It basically moves your money from one custodian to another.

[6:22] – Determining How To Invest Your Money.  

  • 401(k) rollovers only serve to begin the process of giving you control of your wealth. Once you roll that money into an IRA, you still have to know how to reinvest it. We gauge your age, risk tolerance, and amount of wealth to help you determine where to invest.

[7:27] – Examples Of 401(k) Rollovers.  

  • Listen to the stories of clients who rolled their wealth out of a 401(k) and into other accounts.

Today’s Takeaway:


More From David:

The host: David Dickens

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