©2019 Olympic Golden Retirements LLC

This information is designed to provide general information on the subjects covered.  Pursuant to IRS Circular 230, it is not, however, intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or to promote, market, or recommend any tax plan or arrangement.  Please note that Olympic Golden Retirements LLC and its affiliates do not give legal or tax advice. You are encouraged to consult your tax advisor or attorney. Annuity guarantees rely on the financial strength and claims-paying ability of the issuing insurer.  Any comments regarding safe and secure investments, and guaranteed income streams refer only to fixed insurance products. They do not refer, in any way, to securities or investment advisory products. Fixed insurance and annuity product guarantees are subject to the claims-paying ability of the issuing company and are not offered by Olympic Golden Retirements.

  • Olympic Golden Retirements Facebook

401(k) Rollover

 

For 401(k), 403(b), TSP, or Other Tax-deferred Accounts

Thinking about rolling over your 401(k) in to an IRA? We help our clients navigate this process and offer recommendations on how to re-position these assets within the structure of a sound retirement income strategy.   

 

For the most part, there is really only one good reason to contribute to a 401(k) plan, and that is the free money you get from the employer match. Some companies will match up to 100% of your contributions.

 

When you retire, this benefit is lost, and all you’re left with are the limitations that a 401(k) imposes, including:

  • Restricted access to your funds

  • Limited investment options

  • Risk to principal by way of market exposure

  • Limited distribution flexibility in regards to beneficiaries

The Better Option: IRA Rollover

Using a tax-free rollover, you can transfer your funds into your own individual retirement account, or IRA.  Benefits include:

 

  • Continued tax-deferred growth

  • Control where the money is invested without the restrictions of the previous plan

  • Protect your money from market corrections

  • Provides an opportunity for a non-spouse beneficiary to take withdrawals based on the beneficiary's age rather than the age of the donor (stretch option)

  • Direct rollover from your current custodian to a new custodian avoids the 20% mandatory withholding


If you’re still working and have a tax-deferred account with your current employer, you can diversify by executing an in-service rollover.  With this strategy, you can move a portion of the balance to an IRA. This will allow you to keep the current employer-sponsored account active and make regular contributions, while enjoying the advantages of an IRA sooner - essentially, the best of both worlds.