WrapManager's Wealth Management Blog
When life changes, we can help you thoughtfully respond.

How to Successfully Roll Over Your 401(k)

Posted by Michael J. O'Connor | CWS®, Vice President Investments

August 29, 2018

When a person leaves a job to retire or to join another employer, there are often decisions about what to do with your 401(k). Should you leave it where it is, and just not mess with it? Should you roll it over to your new employer’s plan? Should you roll it into an IRA?

Those three questions, in fact, present three distinct options for an investor to potentially choose from. In this post, we’ll examine each option, detail the pros and cons, and in the process, hope to provide you a road map for how to successfully manage your 401(k).

After all, there’s no reason for an investor to not do something with their 401(k) because it just seems too hard to move without incurring penalties. Our biggest suggestion though is that – unless it’s absolutely necessary – you resist the temptation to cash out. Cashing out of a 401(k) and taking it as a distribution means potentially incurring a sizable tax burden, and if you are under the age of 59 ½ your distribution will also be subject to an early distribution penalty of 10% unless an exemption (such as medical costs) exists.

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401(k) Rollover 401k

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Zacks Investment Management and Dividend-Focused Money Managers

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With uncertainty surrounding the current and future interest rate environment, some investors are seeking potential alternatives to holding bonds in their portfolios. Dividend strategies surface as a popular alternative, given they can provide income and the potential for equity-like returns. When searching for dividend strategies, many investors inquire about money manager Zacks Investment Management, which has appeared on our Monthly Top Ten Most Researched Money Managers. For investors wanting to learn more, below we’ll provide information about Zacks’ Dividend Strategy and its investment objectives. (This is for informational and comparison purposes only. WrapManager is not affiliated with Zacks Investment Management, and it has not approved for use nor entered into contracts with them.) [+] Read More

Tips for a Successful 401(k) Rollover

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When someone leaves an employer to retire or join another employer, there are often decisions about what to do with their 401(k). There are several 401(k) rollover options and it’s not always as simple as just rolling it into an IRA. Here are some tips investors should consider before making a decision about how to rollover a 401(k). Tip #1: Use the Rollover as an Opportunity to Evaluate Your Financial Plan Rolling over a 401(k) involves creating a new account and choosing new investments. An investor should also use the opportunity to review all of their investments and evaluate their long-term goals. It’s a perfect time to think about investment objectives, risk tolerance, and to determine whether current funds or money managers are meeting the plan’s needs. Think of a 401(k) rollover as an opportunity to enhance your financial plan and investments. [+] Read More