green moss on brown rock near body of water during daytime

Choosing an IRA rollover means that your money remains tax-advantaged and capable of growth, as in your employer-sponsored plan, but you may also gain more investment options than what may have been available in your employer sponsored plan. You may also gain oversight of managing these important retirement assets from your trusted Advisor.

If you roll your retirement plan assets over into an IRA account that you already own through your Advisor, you also receive the benefit of combined statements and holistic investment planning, making it easier to track your overall financial situation.

"Receive the benefit of combined statements and holistic investment planning, making it easier to track your overall financial situation." brown rocky mountain beside blue sea during daytime

Some of the benefits of rolling your money into an IRA include: Tax-deferred growth potential. Generally avoids current income tax and distribution penalties when removed from employer-sponsored retirement plan. More investment choices. Allows for additional contributions, if eligible. IRAs can be combined and handled by one provider, thereby reducing trustee costs and consolidating statements. Protection from creditors in federal bankruptcy proceedings. Combined amount of your required minimum distributions (RMDs) can be taken from any of your Traditional, SEP or SIMPLE IRAs.

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However there are also some important considerations to make before rolling over your money into an IRA, these include: Internal management fees might be higher than in an employer-sponsored retirement plan. Fees and expenses depend largely on the investments you choose. Loans from an IRA are not allowed. Early distributions may be subject to 10% IRS tax penalty in addition to income tax. RMDs begin April 1 following the year you reach 70½ and annually thereafter; leaving the money in the former employer plan may allow RMDs to be delayed until separation from service. IRAs are subject to state laws governing malpractice, divorce, creditors (outside of bankruptcy), and other lawsuits; leaving the money in the former employer plan may provide additional protection against creditors. Net unrealized appreciation (NUA) is the difference between what you paid for employer securities and their increased value. You lose favorable tax treatment of NUA if the funds are rolled into an IRA.

Hopefully these insights will be helpful as you plan your retirement.


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