The big picture
Understanding Your Rollover Options
"Rollover" gets used loosely. Here's what it actually means, and the general tradeoffs involved.
The big picture
"Rollover" gets used loosely. Here's what it actually means, and the general tradeoffs involved.
A rollover generally means moving retirement funds from one qualified account (like a 401(k)) into another (like an IRA or a new employer's plan) without treating the move as a taxable withdrawal, as long as it's done according to the rules. A direct rollover, where the funds move institution-to-institution without passing through your hands, is generally the more straightforward path. An indirect rollover, where you receive the funds yourself and have 60 days to redeposit them, carries more risk of a costly mistake, including mandatory withholding that can leave you short unless you make up the difference out of pocket.
Employer plans and IRAs can have very different fee structures, both for the account itself and for the investments inside it.
Employer plans typically offer a limited menu of investments; IRAs generally offer a much broader range.
401(k) plans and IRAs can be treated differently under federal and state creditor-protection law.
Depending on your age and account type, different rules can apply to when you must begin taking money out.
Every one of these factors can point in a different direction depending on your specific plan, your specific IRA options, and your specific situation. That's exactly why this page won't tell you which option is best — nobody can responsibly say that without knowing the details.
If you'd like help thinking through your specific numbers, call (832) 536-8693 to talk with a licensed advisor, at no cost and no obligation.
A free, ten-minute conversation, with no pressure to make a decision on the call.
Free — no obligation, no pressure.