Ep 13: What You Need to Know About 401(k) Rollovers

October 28, 2021

Almost everyone will do a 401(k) rollover at some point in their life. On today’s episode of the Retirement Coach’s Corner we talk through what you need to know about 401(k) rollovers, and why it’s important to do.

When you leave a company, you shouldn’t leave your money there but take it with you. You lose control if you don’t take your account with you. The company can make changes that may or may not benefit you, so it’s better if you get to make those decisions. Do you want to invest it conservatively or aggressively? Rolling it over allows you to take control and make sure it fits in your financial strategy.

What are the tax implications of a 401(k) rollover? Don’t fear, this is a tax-free rollover, so you won’t pay taxes on the rollover as long as you don’t take the money out. A lot of people don’t realize how easy it is. Most often, you can make a transfer just by making a phone call and switching it to an account you’ve set up with your advisor. Working with an advisor will help you make the decisions you need to make to plan your retirement.

Once you have control of the account and countless investing options, what should you invest in? How do you figure out what to do? There’s an advantage to working with a financial advisor to make wise decisions and find cost-efficient funds. Make sure you know what kind of fees you are paying, regardless of what kind of account you have.

No matter how you’d answer this question, however, it’s very important to know exactly where you stand financially.

Listen to the entire episode or skip ahead using the timestamps below.

0:42 – Troy just moved into a new home!

1:36 – Let’s talk 401(k) rollovers.

5:43 – How does the rollover fit into your retirement plan?

9:49 – Should you do a rollover before you leave your company?

14:35 – What do we invest in?

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