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Is a Rollover into an IRA the Right Move for You as a NVR Employee?

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Choosing an IRA rollover means that your money remains tax-advantaged and capable of growth, as in a NVR-sponsored plan. You may also gain more investment options than what may have been available in your NVR-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.'

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Some of the benefits of rolling your money into an IRA include:

Tax-deferred growth potential: This generally avoids current income tax and distribution penalties when removed from a NVR-sponsored retirement plan.

More investment choices: This 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. The combined amount of your required minimum distributions (RMDs) can be taken from any of your Traditional, SEP or SIMPLE IRAs.

However, there are also some important considerations that NVR should make before rolling over their money into an IRA, these include:

Internal management fees might be higher than in a NVR-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 a 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 Fortune-500 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 NVR-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 from NVR.

For more information about this topic, view our e-book here: https://retirekit.theretirementgroup.com/will-your-retirement-plan-retire-with-you-e-brochure-offer

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What is the NVR 401(k) plan?

The NVR 401(k) plan is a retirement savings plan that allows employees to save for their future by contributing a portion of their salary on a pre-tax or post-tax basis.

How can I enroll in the NVR 401(k) plan?

Employees can enroll in the NVR 401(k) plan by completing the enrollment process through the company’s benefits portal or by contacting the HR department for assistance.

Does NVR offer a company match for the 401(k) contributions?

Yes, NVR offers a company match on employee contributions to the 401(k) plan, helping employees to maximize their retirement savings.

What is the maximum contribution limit for the NVR 401(k) plan?

The maximum contribution limit for the NVR 401(k) plan is set by the IRS and may change annually. Employees should check the current limits to ensure they are contributing the maximum allowed.

Can I change my contribution amount to the NVR 401(k) plan?

Yes, employees can change their contribution amount to the NVR 401(k) plan at any time by accessing their account through the benefits portal.

What investment options are available in the NVR 401(k) plan?

The NVR 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles, allowing employees to choose based on their risk tolerance and retirement goals.

When can I start withdrawing from my NVR 401(k) plan?

Employees can typically begin withdrawing from their NVR 401(k) plan without penalty at age 59½, but there are specific rules regarding hardship withdrawals and loans.

Does NVR allow loans against my 401(k) balance?

Yes, NVR allows employees to take loans against their 401(k) balance, subject to specific terms and conditions outlined in the plan documents.

What happens to my NVR 401(k) if I leave the company?

If you leave NVR, you have several options for your 401(k), including rolling it over to another retirement account, cashing it out, or leaving it in the NVR plan if eligible.

Are there any fees associated with the NVR 401(k) plan?

Yes, the NVR 401(k) plan may have administrative fees and investment-related fees. Employees should review the plan documents for detailed information on any applicable fees.