4 Things To Know Before Doing A 401K Rollover #40

Is it a good idea to rollover your 401K plan? What are the benefits and the drawbacks? Is it too late to rollover your 401K plan from a previous employer? If you want to make sure that your 401K investments are in a good direction, you’ve come to the right place! 

Recently, I’ve seen a lot of advertisements about rolling over your 401K and I wanted to make sure that savvy investors like you have all the information you need to make the best decision. Join me on this episode as I go over some key information regarding 401K rollovers and what it will take to protect your investments. You’ll want to have pen and paper handy for this informative episode - don’t miss it! 

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You will want to hear this episode if you are interested in...

• What is a 401k rollover? [1:15] 
• Understanding your gains on the stock market [3:00] 
• Don’t pay too much on your 401K rollover! [4:45] 
• The danger of putting all your funds into one stock [8:15] 
• Do you want to continue contributing to your 401K plan? [12:00] 
• Closing thoughts. [13:30] 

What is a 401K Rollover? 

A 401k rollover is a transfer of money from an old 401k to an individual retirement account (IRA) or another 401k. Typically the money must go into the new account within 60 days of coming out of the old 401k. 

When employees leave a job that had a company retirement plan, it's customary to roll over the plan's 401k into a traditional IRA. This provides a great way to continue deferring taxes on the account's earnings until you retire and begin taking distributions.

Or it does, at least, for most of the plan's assets. But if your 401k includes publicly held stock in the company you're leaving, you shouldn't automatically roll these assets over to an IRA. It may make more sense to instead move the stock to a brokerage account and pay at least some tax on it immediately.

Don’t pay too much with a rollover! 

One of your primary jobs as an informed investor is to protect your money. Too often I see men and women with good intentions who fail to keep a close eye on their investments - I don’t want that to happen to you! When it comes to rolling over your 401k into a new investment vehicle, it is wise to do your research before you make the move. It is important to understand the benefits and limitations of all of your available rollover options with respect to your individual circumstances. 

When considering a 401(k) rollover, remember that you don’t have to do it by yourself. Many firms offer rollover specialists who can handle the account setup and funds transfer details to help make the process easier. Learn more about 401k rollovers and what you need to do to protect your assets by listening to this episode. 

Resources Mentioned on This Episode

• Retirement Plan Options For Self Employed People #24
• Avoid Overpaying For Medicare In 2021 and Beyond #31

Connect With Morrissey Wealth Management 

www.MorrisseyWealthManagement.com/contact