401k Rollovers


401(k) and IRA Rollover Basics
 
Over time most people find themselves with IRAs, 401(k) plans and other retirement accounts in multiple locations. 401(k) and IRA Rollovers can help simplify things. Rollovers into a Wells Fargo Advisors IRA with The Berrall Kons Group can give you access to advice and a wider range of investment options:
  • IRAs from a former employer, and those at a brokerage firm, insurance company or bank can be combined or "rolled" in a single account.
  • 401(k) plans, 457 plans, 403(b) plans, Tax Sheltered Annuities (TSAs), and most pension plans can be directly transferred into an IRA as well. This "rollover" feature allows you to consolidate your former employer accounts into one IRA without paying taxes or penalties.
  • Rollovers into IRAs allow you to take control of your assets. Within an IRA you'll have access to countless investment options in a single account.
  • Creating a retirement income plan becomes much easier when the investment strategy is coordinated and the investments are consolidated.
  • Consolidating accounts can avoid the need to take distributions from multiple accounts at multiple investment firms. It can also make life simpler for you and your heirs.
 
 
Tips for the 401(k) and IRA Rollover Process
  • Be sure to select "direct rollover" or "direct transfer" when completing rollover paperwork. Not completing the paperwork correctly could trigger a taxable event.
  • When you receive a check from your previous employer or brokerage firm be sure to deposit it with your new financial institution (hopefully that's Wells Fargo Advisors) as soon as possible. Delays could trigger a taxable event.
  • Know your basis. If you have an IRA or a 401(k) with a combination of pre-tax and after-tax contributions it's important to know how much you have in each. You may even want to explore some more advanced rollover and timing strategies that can help you avoid paying pro-rata income taxes on future distributions.
  • Timing is important. You'll want to start the rollover process well in advance of an anticipated need for income. The rollover process is often as quick as a few days, but in rare situations it can take several weeks before you have access to your money. Be sure you have your income needs met with outside sources before initiating a rollover.
 
The Berrall Kons Group of Wells Fargo Advisors is a family team of financial advisors in Waukesha, Wisconsin. We would be honored to be a resource for you and your family. Please contact us to discuss your 401(k) and IRA rollover options (262) 798-3787.
 
 
 
 
 
 
 

Well Fargo Advisors does not provide tax or legal advice. Be sure to consult with your own tax and legal advisors before taking any action that may have tax or legal consequences.