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IRA Rollover Professionals

Rollover Options


Rollover Options for your 401k or 403b funds
(To qualify you must be separated from service, or age 59 or older)


Trustee to Trustee transfer
(Recommended and most common)


Under this method your 100% of your funds go directly from your employer plan to your IRA account. There are no taxes or penalties incurred under this method, and NO LIMIT to the number of "trustee to trustee" transfers you can make during a calendar year. You must be separated from your employer or over age 59 to implement a trustee to trustee transfer. The "PERFECT OPTION" for consolidating old 401k & 403b accounts!


Direct Rollover

Under this method your funds go directly to "you" and you have 60 days from the date you receive your check to deposit it in an IRA account. Your employer is required to withhold 20% of your account balance, therefore you have to add the 20% out of your pocket to complete your rollover. You receiv a 20% credit when you file your taxes. New tax laws now allow only one direct rollover per calendar year.


Keep funds in your old employer's plan

Most employers allow you to keep funds in your old 401K ,however there are a few things to consider. If you are over the plans retirement age or age 62 your company may insist that you take a payout in order to decrease the plan's administrative cost. If you have multiple 401k or 403b accounts, it's usually always better to consolidate them which leads to easier recordkeeping, more investment choices along with the ability to receive a 10% match!


Lump Sum Withdrawal

There are huge tax penalties incurred on withdrawals from you 401k or 403b account. A mandatory 20% federal tax withholding along with state taxes and a 10% penalty if you are under age 59 . You lose all of your tax deferred gains under this option.