IRA & 401(k) Rollovers

Rolling your traditional 401(k) to a traditional IRA

You can directly rollover your traditional 401(k) assets into a new or existing traditional IRA account. Your money is then moved directly (electronically or by check) into the new account. You will not need to pay any additional taxes and any new earnings is tax deferred.

Rolling your Roth 401(k) to a Roth IRA

You can directly rollover your Roth 401(k) assets into a new or existing Roth IRA account. Your money is then moved directly (electronically or by check) into the new account. You will not need to pay any additional taxes and any new earnings is tax deferred. You are eligible for tax-free withdrawal once the Roth IRA account has been open for at least five (5) years and you are at least age 59½.

Rolling your traditional 401(k) to a Roth IRA

You can directly rollover your traditional 401(k) assets into a new or existing Roth IRA account. Your money is then moved directly (electronically or by check) into the new account; however, you will have to pay taxes on the amount that is rolled over. You are eligible for tax-free withdrawal once the Roth IRA account has been open for at least five (5) years and you are at least age 59½.

Additional Options

Beyond the standard options above, there are additional strategies and products you can roll your old 401(k) into, depending on what is right for your situation.

Cash out your 401(k) 

You have the option to cash out your 401(k) account with your former employer, but the IRS may withhold 20% of your 401(k) for taxes. Additionally, withdrawing money from your 401(k) before you’re age 59½ may incur an additional 10% penalty. This means that you may have less money for your future.