That's because it is.
Once you roll your 401(k) to a regular or Roth Individual Retirement Account (IRA), it works in much the same way as your employer's savings plan, but without the company match, of course.
One advantage of rolling your 401(k) to an IRA with Edward Jones is that your financial advisor can help you make sure your investments are in line with your objectives and goals – even as they change and evolve throughout your life.
No matter what you decide, the benefits of rolling your employer retirement plan assets to an IRA are many:
- Many investment options
- One-on-one guidance and regular review of your investments
- The opportunity to consolidate other plans and investments to ensure diversification and simplify account information at tax time
- Flexible options with potential tax benefits to your beneficiaries after your death
- Additional strategies that may be customized to your specific situation
- Commission and fee-based options available, depending on how much involvement you’d like to have in your investments
Direct or indirect?
There are two ways to roll your plan assets to an IRA, direct or indirect. And it really depends on whose name is on the check.
With a direct rollover the check is written directly to the IRA. This method enables you to avoid the 20% employer withholding and any taxes or penalties due.
If the check is made out to you but you still want to roll it over, you absolutely can. However, your employer must withhold a mandatory 20% and you may owe taxes and a 10% penalty on it if you don't roll it, withholding included, within 60 days.
A local Edward Jones financial advisor is ready to help you roll your 401(k) plan assets over to an IRA to help you stay on track toward your retirement goals. Use our office locator or call 800-ED-JONES to find an office near you.
at the benefits of whether you should Roll it, Take it, Leave it or Move it with our 401(k) Options Chart.VIEW