A 401k rollover is the term typically used when an individual who has a 401k plan wishes to "rollover" their retirement plan into a new IRA (Individual Retirement Account).
This process is most commonly referred to as a "401k rollover" or an "IRA rollover", and typically occurs when you change employers or retire and want to better control how your retirement savings are invested. If you leave a job for whatever reason and have a 401k account, you traditionally can decide between taking a lump sum (with possible tax penalties), to keep the funds with your old employer (if they allow this), or to arrange a 401k rollover into a new IRA.
The IRA is not an investment itself, but merely an account that holds future investments on your behalf, such as stocks, bond, annuities, mutual funds and money market funds.
The advantages of a 401k rollover are that you can avoid any immediate tax liabilities, and keep your money earning tax-deferred income on track within your retirement plan.
Millions of 401k rollovers take place each year between insurance companies, banks and financial institutions. It is important to make sure that your former employer transfers the funds from your 401k direct to your new IRA account. If the money is sent to you, they must withhold 20% of the distribution as a prepayment of federal taxes, in addition to other possible fees and penalties.
A qualified financial planner can be of tremendous assistance in helping you map out an investment strategy that is tailored specifically to your needs. Beyond the 401k rollover, they can help make sure that your decisions align with your retirement plan, provide advice on maximizing future contribution advantages through 401k matching plans a new employer may offer, and assist you in monitoring and advising on any changes that could improve your financial outlook and security.
The 401k rollover can also be utilized for those moving into retirement, who would like to consider moving their savings into an annuity to maximize growth through tax deference into the future. There are several different types of annuities that can be advantageous from a 401k rollover, including indexed annuities, fixed rate annuities and even immediate annuities for income generation.
NOTE: The answers to coverage questions are primarily based on ISO forms generally used in Florida by most companies. However, please keep in mind that all companies� forms are NOT necessarily the same. Some companies may provide broader coverage and some may be more restrictive.
IN ALL CASES, THE CONSUMER MUST REFER TO HIS OR HER OWN POLICY FOR SPECIFIC COVERAGE INFORMATION.
The privacy of our website visitor’s and our client's is very important to our company. We will respect your privacy and we will not share your information with advertining or marketing companies, and will not sell your information to any mailing lists. We only share your personal information with the companies and the individuals that are necessary in performing our business duties in acquiring and in servicing your insurance needs. Please feel free to contact us immediately if you have any questions about your privacy.
Information contained within this site is the property of Hoffman and Associates Insurance Company and is provided for consumers looking to purchase insurance. Any other use is prohibited. We are not responsible for errors and omissions on this web site. All information contained herein should be deemed reliable but not guaranteed, all representations are approximate, and individual verification is required. Please contact Hoffman Insurance Company at 321-751-2511 before making any purchase decisions based on information contained on this web site to check for validity. This content is copyrighted by Hoffman and Associates Insurance Company and will bring legal action on to anyone who copies the information contained here. PLEASE NOTE THAT COMPLETION OF A REQUEST FOR INFORMATION DOES NOT CONSTITUTE THE PURCHASE OF INSURANCE. NO COVERAGE MAY BE ADDED, CHANGED OR BOUND AS A RESULT OF SUBMITTING A REQUEST FOR INFORMATION. ALL COVERAGE MUST BE CONFIRMED BY THE AGENCY IN WRITING SUBJECT TO AN ACCEPTABLE SIG NED APPLICATION MEETING THE UNDERWRITING GUIDELINES OF THE INSURANCE COMPANY. Please read your policy carefully for your terms of coverage. No information in this website alters the terms of coverage in your individual policy. If you do not agree to these terms please exit this website