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401K Rollovers/IRA's

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Home » What We Do » 401K Rollovers/IRA's

Improve your game while decreasing your handicap during any career change with the help of a financial advisor at RCB Wealth Management.  We offer a variety of options to help you manage your retirement funds during any life change, be it a career change, retirement or a layoff.  Our financial advisors are equipped with the knowledge and experience to provide a full explanation of all your options and to help you make the best possible decision regarding your retirement plan assets. Your advisor will review your own personal situation, take the time to understand your individual needs and objectives and then help you implement the most suitable strategy.

For more information, contact your financial advisor at RCB Wealth Management or, if you are not yet a client, click here to find an advisor nearest you.

 

What Decisions Need to Be Made?

• Do you want the money now?

  If you want to take all or part of your money in cash, you will pay ordinary income taxes – and possibly a 10% penalty – on whatever portion is not rolled directly into an IRA or another employer’s plan.

• Do you want to pay the tax later?

  If you want to keep deferring taxes and maintain control over your money, you can transfer your assets directly from the current plan into a traditional IRA or another employer’s plan if the plan allows a rollover.

• Do you want to pay a one-time tax today?

  If you want to take advantage of a Roth IRA and ultimately withdraw your money tax-free, you can now roll directly into a Roth IRA, which requires you to pay tax on the distribution amount in the year of the rollover

Retirement Rollover Options

Financial advisors at RCB Wealth Management will help you make an informed decision about your rollover options by carefully considering the alternatives.  The following chart compares the benefits and drawbacks of the various options you can choose.

Retirement Rollover Options

Distribution Options	Pros	Cons
1. Roll over to an IRA	Money continues to grow tax-deferred  Investment flexibility  Flexible beneficiary designations and distribution options  Access to money  Able to convert to a Roth IRA	No loans or age 55 retirement distribution provisions  Outstanding loan on a plan must be repaid before rolling over to an IRA
2. Roll over to a Roth IRA	Money will grow tax-free  Investment flexibility  Beneficiaries will receive money tax-free	Must pay ordinary income tax  Tax paid with account proceeds will be deemed a distribution, therefore taxed and penalized if applicable
3. Take as cash	Immediate access to savings  Taking a distribution of shares of company stock may lower taxes, if eligible (see Net Unrealized Appreciation, above)	No longer tax-deferred  Penalty if under 59½  Subject to 20% withholding
4. Roll over to a new employer’s plan	Money continues to grow tax-deferred  Ability to take loans if plan allows  Account consolidation  May be eligible for penalty-free withdrawals if you retire at or after age 55	Subject to distribution rules of the plan  Non-spouse beneficiaries generally required to take lump-sum distribution until 2010, when all plans are required to allow nonspouses the ability to rollover  Plan investment limitations  May have restrictions on trading and additional fees
5. Leave the money in the plan	Money continues to grow tax-deferred  No decisions to make right now  May be eligible for penalty-free withdrawals if you retire at or after age 55	Plan investment limitations  Non-spouse beneficiaries generally required to take lump-sum distribution  May have restrictions on trading and additional fees