May 17, 2021

401k Rollovers

Get help with 401k Rollovers at Texas Insurance Agency. The decision to rollover your 401k can be a tough one. You might not even know how or where to rollover. Our insurance agents can assist you in making this decision. 

What is a 401k Rollover?

If you happen to be changing jobs or want to change your retirement account, you might be thinking of rolling over your 401k. This is moving the money in your current 401k account into another retirement account.  

When deciding to do a 401k Rollover, there are a couple of steps to follow:

  1. You want to choose where the money is being transferred.
  2. Decide on the kind of account you wish to transfer the funds to.
  3. Start the process of rolling over. 

As you are going through the process, remember something called the 60-day rule. This rule entails that once you receive the money from your retirement, it should be deposited into another account between 60 days. The withdrawn amount is taxed if this is not done on time. 

The previous institution your 401k was can send a paper check to you or the new institution you have chosen. It is also possible for the transfer to happen by a wire transfer. Just keep in mind that it needs to be transferred between 60 days. 

Where Can you Rollover?

You can rollover your 401k retirement money into 3 possible accounts. The decision is ultimately yours, but you want to do your research before making this decision. 

A Traditional IRA is an individual retirement account that provides tax-deferred growth on your investment. This means you will not owe capital gains tax on any investments, interests, or dividends that are in your account. 

Transferring to a Roth IRA might be more appealing for those who might not be able to save because they have higher incomes. This is an individual retirement account that can give you a tax-free income during your retirement. Roth IRA accounts are a little easier to withdraw from, but you must stay for at least 5 years.

You can also transfer to another 401k account. If you rollover the plan you had with an old employer to your new employer, you can have everything in the same place. This minimizes having to keep track of several accounts and having to pay maintenance fees. 

401k Rollovers

Pearland Texas Business Liability Insurance

Talk to us about 401k Rollovers today

Consider the options given to you. If you would like to talk more extensively about your options and what you can do, give us a call at 281-398-1010. An agent will be more than happy to speak with you. 

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