IRA & 401(k) Rollovers

What’s the best way to handle old IRAs and 401(k)s?

401(k) plans through your employer provide a lot of great benefits. They allow you to save on a pre-tax basis to accumulate your retirement wealth, while achieving deductions for your contributions and tax-deferred growth along the way. However, the downside is that you are forced to choose only from the list of available options inside your plan. This might end up feeling like being inside the Library of Congress and only being able to choose from one or two bookshelves. If you leave your employer or retire, you now have the ability to take control of your assets and choose from the whole library without creating a taxable event, by doing a 401(k) rollover in an IRA. However, did you also know that you might be able to continue working, continue saving new money into your plan at work, and still take advantage of this rollover process? The law allows workers who have reached 59 ½ to take advantage of this through a process called an “in-service rollover.” While the law permits this, this is still something that is company specific and may or may not be offered.

At Kelly Financial Services, we're here to educate you on the universe of investment options that exist for you. Call us today to see if taking advantage of this rollover process is advantageous for you and your retirement dollars.