Secure Your Future Today 401k Rollover Made Easy

Types of 401k Rollovers

There are generally two types of 401k rollovers: direct and indirect. A direct rollover involves transferring your retirement funds directly from your 401k plan to your chosen IRA account. This method is straightforward and avoids any tax penalties. An indirect rollover, on the other hand, involves withdrawing the funds and depositing them into a new retirement account within 60 days. While this option offers temporary access to the funds, it comes with the risk of incurring taxes and penalties if not completed within the stipulated time frame¹.

Steps to Execute a 401k Rollover

1. Evaluate your current 401k plan and determine if a rollover is the right move for you.
2. Research and choose the appropriate IRA provider that offers the investment options you desire.
3. Contact your 401k plan administrator to initiate the rollover process.
4. Ensure that the funds are transferred directly to avoid any tax implications.
5. Monitor your new IRA to ensure your investments align with your retirement goals.