Smart Solutions - How to Convert 401(k) Accounts
Every individual’s situation varies, but these major life events typically result in choosing an IRA Rollover. At The First, our rollover experts can help make the best use of your 401(k). We offer all the solutions you need, all in one place, no matter your situation or future goals. We’re here to make the rollover process easy with answers for all of your questions.
Call on The First to speak with an expert in 401(k) rollovers today,
“I’ve changed employers. What can I do with my 401(k) funds?”
If you are leaving a job, have changed employers, or are ready to retire, you have several options from which to choose. Each individual’s situation varies, but here is an overview:
- Rollover your 401(k) funds into an IRA of your choice.
- Leave your funds in the plan.
- Move your funds into your current employer’s retirement plan.
- Withdraw the funds.
“What happens to my 401(k) accounts when I retire?”
Your existing 401(k) accounts need to be managed and protected so they can help you secure a healthy financial future.
You may choose to leave the money in the current account until you reach the age of 70 ½ years, when you are required to take at least a minimum distribution.
Some employer plans place limitations on inactive or retired accounts, so it is important to review your plan with an IRA Rollover specialist at The First before you take action.
“What if I need to take money out of my retirement plan?”
First, consider the major impact of taking money out of your plan:
- 20% of the balance will be withheld for federal income taxes.
- If you don’t deposit the withheld amount to a new IRA or new company plan, it will be added to your income, which may be taxable and may make you subject to IRS penalties.
You may be able to take a portion of your money out of your 401(k) plan, but not all plans allow this. For instance, you may qualify for a waiver of the penalty tax if you take the money from an IRA rather than directly from your plan at work. Typically, you are only allowed to take money our of your 401(k) when you reach normal retirement age, leave the company, become disabled, or if your employer terminates the plan.
This educational page provides an overview of 401(k) Rollover Options offered at The First. These options include both FDIC-insured IRAs and Investment Products.
Investment Products offered by our First Wealth Management department:
- Are Not insured by the FDIC or any other federal government agency.
- Are Not deposits of or guaranteed by a Bank or any Bank affiliate.
- May lose value.