If you have met one of the qualifying events as outlined in IRS regulations, you may be able to move your current Qualified Retirement Plan into an IRA account. Generally, plan funds are distributed according to the instructions provided by the participant. You may want to contact the administrator of your Qualified Retirement Plan to find out. We can help coordinate between you and the administrator. Just call us at 1-(800) 460-8558
1. What the procedures are to remove funds from the plan.
2. Whether or not you are eligible to roll the funds out of the plan.
Some plans require that you first establish your receiving IRA account and provide them with the account number to facilitate the rollover account is opened.
When you change jobs, don't let your 401(k) plan get lost in the shuffle—it's just as portable as your Palm Pilot, and picking the right rollover strategy can boost the return on your nest egg. Every company has its own set of rules, so check with your benefits office to make sure you can actually implement the strategy of your choice.
More than 60% of job changers make the worst choice: withdrawing the money. Many are forced to do so because their accounts are worth less than $5,000 and they haven't decided where they want their money to be transferred. What a waste! For starters, there's that mandatory 20% federal withholding tax, plus the 10% penalty if you are under 59 1/2. And you give up the tax-deferred returns you could be earning on that money over the next 10 or 20 years. Consider this option only if you face a serious emergency.