You do not have to be held captive by your 401k or pension fund. You have options.
If you are 59 ½ or have left your employer, you owe it to yourself to look into your 401k rollover options, especially if you are nearing retirement and looking to generate guaranteed lifetime income. Money held in a 401k is vulnerable to stock market loss, and it is also typically heavily weighted with your company’s stock which exposes you to unnecessary risk. This is especially true in a company pension plan.
We can help rollover your 401k or company pension to help you:
- Enjoy portfolio growth with zero downside risk
- Implement a smart retirement income solution with income you can’t outlive
- Maximize your retirement paycheck with the highest payout rates available
Can anyone do a 401k rollover? No, you must either be 59 ½ years old or older or have left your place of employment.
What if I have a pension? If you have a pension fund, you may be able initiate a rollover as soon as you turn 59 ½ years old or when you’ve left the employer. Other employers require you to wait until you leave the company regardless of age. We can help you navigate your company’s plan rules to see if you are rollover eligible.
How hard is it to do a rollover? It’s not difficult. There are four basic things you need to do:
- Gather up your latest statement. This shows the amount you have saved along with how much you and your employer (if they offer a company match) have contributed.
- Decide what you will roll it into. Contact the retirement experts at The Legacy Council to explore your options. It may make sense to roll over your funds into an income-generating product like a fixed index annuity.
- Set up a new account. We can assist with any paperwork to make the transition as smooth as possible.
- Initiate the rollover. Once all the paperwork is complete, simply specify that you want your funds transferred directly from the old account to the new account.
What’s the catch? The main “catch” is making sure you do your rollover right. Having the funds directly transferred (a “direct rollover”) from your old account to your new account without ever touching the money yourself is typically the best solution. If you have the check made out directly to you, you can face stiff IRS penalties unless you redeposit the fund in a qualified plan within 60 days. There are restrictions on 60-day rollovers you need to know and the forms can be confusing so be sure to contact us today. We’d be happy to walk you through the entire rollover process.
Can I buy an annuity with my 401k or pension fund? Yes. You can rollover your 401k or a lump sum from a pension into an annuity without paying taxes (if done correctly). Annuities funded with these retirement savings plans are considered “qualified”, where the insurance company will create an “IRA annuity” allowing you to directly deposit your funds.
Your customized 401k/pension plan rollover solution is just one step away! Call the Retirement Advisors at The Legacy Council today at (513) 442-2000.