Oftentimes, 401(k) plans are filled with poor investment decisions and high fees. And, depending on the company you work for, you might not have been given the proper information needed to carefully evaluate your 401(k) options. Rolling your 401(k) type balances out of your plan at age 59½ may allow you to take better control and improve your retirement investments.
Typically, there is a 10-percent penalty if you withdraw money from a 401(k) plan before age 59½. However, there are a lot of different factors that play into the penalties and fees associated with your accounts. At age 59½, you may be able to roll over your current balance of your 401(k) plan into your own IRA. This may allow you access to hundreds or even thousands of more choices for your investments than what your current 401(k) plan allows. On top of this, you could potentially take advantage of lower-risk insurance company investment options while still continuing to contribute to your current 401(k) plan and receive your employer match.
In any case, you’ll want to sit down with your trusted financial professional to help ensure full control of your 401(k) plan, including any rollovers and withdrawals. With each option that’s available to you for your 401(k) plan, you’ll be faced with numerous questions that, when not properly addressed, can lead to potential penalties. Think about the old “Stop, Drop, and Roll” strategy you’re taught at a very young age when a fire is suspected nearby…Even with potential dangers looming, you are taught to first, stop.
Before you think about rolling over your 401(k) plan, just take a moment to stop, and take control. You’re not supposed to be an expert and it’s okay to ask questions. We will help you by working together to go over your 401(k) plan and any other retirement accounts playing an important role in your overall retirement strategy. Schedule your no-obligation financial review to learn about your options.
Securities and advisory services offered through Royal Alliance Associates, Inc. (RAA), member FINRA/ SIPC. RAA is separately owned and other entities and/or marketing names, products or services referenced here are independent of RAA. RAA is not affiliated with Lone Beacon
Neither the named representative nor the named Broker/Dealer or Investment Advisor gives tax or legal advice.
Fixed index annuities are designed to meet long-term needs for retirement income. Early withdrawals may result in loss of principal and credited interest due to surrender charges. Distributions may be subject to ordinary income tax and, if taken prior to age 59 ½, an additional 10% federal tax. An income rider or benefit (sometimes called Guaranteed Lifetime Withdrawal Benefits, or GLWB) is an additional feature available with some annuities and generally optional and come with additional cost. Income benefits are designed to provide income options above and beyond the standard annuitization or free withdrawal features in annuities. All contract gains beyond the CAP rate are surrendered to the insurance company to pay for the expense of the product.
The views expressed are not necessarily the opinion of Royal Alliance Associates Inc, and should not be construed directly or indirectly, as an offer to buy or sell any securities mentioned herein. Individual circumstances vary. Investing is subject to risks including loss of principal invested. No strategy can assure a profit against loss.