401K ROLLOVERS

Sometimes 401k or 403b rollovers are a no-brainer; why leave money on the table with a former employer? In the case of getting a new job, 401k rollovers are almost always recommended with a few exceptions. We can help you take control of any of your 401k money that is still left in an old employer’s account by providing 401k rollover services, helping you to analyze which type of investment might be best for you and your family based on your personal situation. But there are other reasons to consider rollovers—specifically tax reasons.

The tax advantages conferred by the tax-deferred nature of 401k and traditional IRA plans can start to become disadvantageous as you edge toward your 70s, because starting at age 72, the IRS requires you to start taking money out of these plans whether you want to or not. Required Minimum Distributions (RMDs) are complex to calculate, and the money must be taken out by December 31st of each calendar year, or you risk a 50% penalty on top of taxes owed. Rolling money into Roth IRAs—where no RMDs will be due—can be advantageous for some.