Broker Check

401k Rollover

The Sunrise Wealth Advisors Difference

Sunrise Wealth Advisors have over 75 years of experience from beneficiary payouts to trust establishments and 401(k) rollovers. Our mission is simple; we aim to provide experienced financial planning and objective financial guidance for those seeking assistance in these areas. You can rest assured knowing we have your best interest in mind because we believe the client’s best interest should always come first and never be compromised. Together, we will work with you as a team to provide the financial advice you need to turn your current financial situation into your dream retirement plans.

What is 401(k) rollover

A 401(k) rollover is a transfer of money from an old 401(k) to an individual retirement account (IRA) or another 401(k). If you leave your job for a new employer, it's important to address whether or not you want to rollover your 401(k). This money typically must go into your new account within 60 days. You are allowed only one rollover per twelve-month period from the same IRA.

How does 401(k) Rollover work

In order to rollover your 401(k), there are many steps to consider. First, you should decide where you want the money to go by choosing a brokerage or bank to hold your rollover IRA. You will also want to make sure you follow your IRA institution’s instructions and procedure carefully to avoid any possible complications. You should request a direct rollover to avoid the check being made payable directly to you, resulting in a mandatory 20 percent withholding for taxes.

Should I Rollover my 401(k)?

When deciding to rollover your 401k, there are a few things to consider. Some of the benefits to rolling over your 401(k) include more investment choices, better communication, lower fees, and the potential to open a Roth account. Once in a rollover IRA, your money is subject to IRA rules, including mandatory distributions at 59 ½. Important to note is that money held in a 401(k) is protected by federal law from most types of creditor judgments, including bankruptcy providing you with legal protection. You could also save a lot of taxes if your company includes stock that has greatly appreciated.

Key Takeaways

Whenever you change jobs, you have several options with your 401k plan account. You can cash it out, leave it where it is, transfer it into your new employer's 401(k) plan, or roll it over into an Individual retirement account (IRA)—leaving you with many things to consider when deciding what to do about your existing 401(k). This is why you should consult with a professional at Sunrise Wealth Advisors to ensure you are making the best decision carefully for your unique circumstances. When you and your job part ways, deciding what to do with your retirement savings is a big decision you don’t have to make alone.