Individuals

What are my options for my 401k at my former employer?

In general, there are three options for your 401k at your former employer, and each has advantages or disadvantages based on your specific situation. 

Based on the IRS guidelines, the participant account can

• remain with the former employer’s plan,
• can rollover into a current employer plan, or certain qualified plans,
• or into an IRA.  

Please reference the chart provided by the IRS for guidance…IRS Rollover Chart on irs.gov

If you have questions, let's discuss your specific circumstance!

Many utilize business retirement plans for their primary retirement savings; however, other options are available for specific goals, supplemental retirement assets, or just to participate in our capital markets.  Common options include a Traditional IRA, Roth IRA, or a taxable Brokerage account.

• Traditional IRA
  • The popular Traditional IRA is a personal retirement account. It’s structured to potentially grow your assets in a tax deferred account. 
• Roth IRA
  • The Roth IRA is also a common personal retirement account. It is structured to allow tax advantages upon withdrawal growing taxed income.
  • Here’s a resource for the some of the specifics and differences between the Traditional and Roth IRA. 
  • Traditional versus Roth IRA
• Brokerage account
  • Utilize a brokerage account for marketplace participation or excess cash positions.
    

Children have special needs in the financial world.  Here are a few options to consider depending upon your specific circumstances.

• UTMA or Uniform Transfer to Minor Act Account
  • The UTMA account allows gifting to children for their needs and eventual ownership.
• Coogan Account
  • The Coogan account is designed for the protection of child actors.
• 529 College Savings
  • Account utilized to set aside college savings for future use by a child.

Here's a resource to learn about Getting a Head Start on College Savings.

Would you like to discuss your options?