There are many things you need to know when it comes to rollovers. There are specific rules that must be followed in order for an 401k rollover or transfer to be tax-free. For example, if an eligible 401k rollover distribution is paid directly to you, 20% of it must be withheld for federal taxes. This is a mandatory tax and applies even if you plan to roll over the distribution into a traditional IRA, however this tax can be avoided by choosing to have the distribution check payable directly to your new financial institution. This is called a direct rollover option. In addition, the funds must be deposited into the new account no later than 60 days (in most cases) from the time they are withdrawn.

IRA rollovers can be largely beneficial, especially in cases where you no longer work for an employer. In many cases, there is high risk and unnecessary fees associated with company retirement plans (401K/403B/TSP) which can be avoided. A mistake in a pension rollover can result in complete taxation of the entire pension value. When considering transferring a pension fund, make sure you understand all of the options inside and outside of the pension plan. There are many advantages when it comes to pension rollovers, perhaps the most appealing is the built-in protection and piece of mind that many options offer, which eliminates the possibility of pension reduction or elimination in such cases of company bankruptcy or failure. We specialize in rollovers and transfers and can help you to find and successfully execute the best options.