A 401(k) rollover simply means that you are taking your funds in your current 401(k) and moving them, rolling over, into an IRA, Individual Retirement Account. You can also transfer the your 401(k) to another 401(k) as well if you are working for a new employer and they have a 401(k) option.
By rolling over your monies, you avoid any tax consequences as the money remains tax-deferred. There are several options for rolling these monies to an IRA. I usually recommend rolling them into an Annuity, a Fixed Indexed Annuity. The reason is to preserve the moneys you have worked so hard to get. You are guaranteed to never lose your initial balance and usually get market like gains. When you retire, if the account was set up correctly, you can get a lifetime income as well.
If you are looking at options and would like more information, do not hesitate to contact your broker adviser. If you do not have one or would like a new perspective, contact me.
That is a great question! Simply put, a 401k rollover is what you call the action of taking the funds from one 401k and moving them ( or "rolling them over") into another 401k fund, or similar retirement vehicle. This has to be done in a very timely fashion, or there are tax consequences, and is most commonly done when you switch employers, and want to keep funding the 401k. Thanks for asking!
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By rolling over your monies, you avoid any tax consequences as the money remains tax-deferred. There are several options for rolling these monies to an IRA. I usually recommend rolling them into an Annuity, a Fixed Indexed Annuity. The reason is to preserve the moneys you have worked so hard to get. You are guaranteed to never lose your initial balance and usually get market like gains. When you retire, if the account was set up correctly, you can get a lifetime income as well.
If you are looking at options and would like more information, do not hesitate to contact your broker adviser. If you do not have one or would like a new perspective, contact me.