Good Financial Reads: Retirement Account Rollovers

Ready to roll(over)? You can use this cheat sheet to guide you through the process.

✅  Know where your employer-sponsored retirement plan or IRA account is and where you want it to go.

✅  Review your rollover options and decide on the best one for you. Be sure to consider the potential tax implications of indirect rollovers — and how you can avoid them. Don’t forget that the type of account you have and the custodian it’s with could limit your options.

If you are a mid-career professional, chances are you have switched jobs a few times, and considered rolling over funds from your ex-employer retirement plan. So, here you go: In this video, I will present to you the difference between a “Direct” Rollover and an “Indirect” rollover.

[Watch the Video] 

Do you have accounts with past employers you need to do something with?  Should you roll these over or should you just leave it where it’s at?  We will discuss some things to consider when you are making these decisions.  I’ve drawn a chart here so we can answer some questions about Consolidating Retirement Accounts. There are really two main types of accounts available with your employers: tax-deferred like a 401(k) and tax-free, like a Roth 401(k).