401(k) Planning

401(k) Rollovers: Exploring Your Retirement Plan Options

At New Stage Investment Group®, we believe in empowering our clients through education, so they can make informed decisions about their financial future. When it comes to managing your retirement savings, understanding your options is crucial. We take an educational approach, guiding you through the various paths available so you can confidently choose the one that aligns with your goals. Let's explore the four main options for managing your employer-sponsored retirement plan:

Rolling Over Your Plan to a New Employer’s Plan

One option, when you leave a job, is rolling over your 401(k) to the employer-sponsored retirement plan your new employer offers. By doing so, you can continue to benefit from tax-deferred growth opportunities and avoid early withdrawal penalties. Additionally, moving your savings to another retirement plan later remains an option, providing flexibility for the future. However, it's essential to note that you'll be limited to the investment options and services offered by the new plan.

Rolling Over to an IRA

Another avenue to consider is rolling over your retirement savings into an Individual Retirement Account (IRA). This option offers flexibility in selecting investment services and options tailored to your specific needs. You may also have the opportunity to convert a Roth IRA after-tax account if it aligns with your financial strategy. However, it's important to weigh the potential drawbacks, such as annual fees and commissions, which may be higher than those of your employer-sponsored plan.

Staying in the Plan

You also have the choice to remain in your current employer-sponsored retirement plan. This decision allows you to continue benefiting from tax-deferred growth opportunities and access to your plan's investment options and services. However, staying in the plan means you'll be limited to its investment options, and you may still have to pay administrative fees. It's crucial to review your plan's terms carefully to ensure it meets your long-term financial objectives.

Cashing Out

Lastly, you can opt to take a distribution of your retirement savings in cash. While this provides immediate access to funds, it comes with significant implications. You'll lose the ability to grow your savings on a tax-advantaged basis, and your distribution may be subject to state and federal taxes, along with potential early withdrawal penalties. Before choosing this option, it's essential to consider the long-term impact on your financial security and consult with a tax advisor.

Consolidating and Optimizing Your Retirement Accounts

Consolidating and Optimizing Your Retirement Accounts

At New Stage Investment Group®, we understand the importance of not "orphaning" your old 401(k)s. Neglecting previous retirement plans can result in missed opportunities for growth and optimization. That's why we offer personalized assistance to review your old retirement plans and determine the best approach for consolidation and optimization. Our goal is to ensure that your retirement strategy remains aligned with your financial objectives, providing peace of mind for the future.

Thinking About a Rollover?

Navigating the landscape of retirement planning and employer-sponsored retirement funds can be complex, but with the right guidance, you can make confident decisions that support your long-term financial well-being. At New Stage Investment Group, we're here to educate and empower you every step of the way. Reach out to us today to begin exploring your retirement options and securing a brighter tomorrow.

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New Stage Investment Group® and LPL Financial do not offer tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.