What Is A Direct Rollover?
Simply put, a “direct rollover” is a distribution of eligible assets from a 401(k), 403(b) or other retirement plan into an IRA. Pre-tax retirement plans, such as a 401(k), 403(b), 457, Profit Sharing Plans, etc. are most often directly rolled over to a Traditional IRA, whereas after-tax retirement plans, such as a Roth 401(k), are usually rolled over directly into a Roth IRA (see Rollover Chart). To avoid taxes and penalties, direct rollover funds are never made payable to an individual but rather to the IRA custodian or trustee.
Who Is Eligible For A Direct Rollover?
Direct rollovers commonly occur after a “triggering event.” Examples include, but are not limited to, separation from service (retirement, job change, etc.), disability, and plan termination. Done properly, the direct rollover allows the funds to be moved to a personally owned IRA or a new employer’s plan without paying taxes or penalties.
In some cases, “In-Service Withdrawals” may be permitted. An in-service withdrawal is a distribution that can take place even without a triggering event.
For example, an employee who is 59 1/2 or older may be able to roll over 401(k) funds to a personally owned IRA while still employed although the employer’s plan would have to have provisions allowing in-service withdrawals. This can be especially attractive for those who want to customize their retirement assets, expand the amount and type of investment options available, and/or avoid the “one size fits all” choices common in so many plans today. In addition, as long as the employee continues working, the 401(k) can remain open and the employee can continue saving while taking further advantage of pre-tax contributions and the company match, if available.
401(k) Rollovers With OMC Near Syracuse, NY
At OMC Financial Services, we have years of experience providing 401(k) rollover services to people just like you, from local 401(k) rollover clients near Syracuse, NY to clients all over NY state and the country. Our 401(k) rollover professionals turn confusing paperwork into a smooth transition. If you have changed jobs and had a 401(k) with your former employer, OMC Financial Services can help you with the 401(k) rollover process. Even if you have an old 401(k) from a job years ago, we may be able to convert an otherwise unproductive asset into a coordinated part of your overall portfolio. Because 401(k) rollovers can reduce your retirement savings if the proper considerations are not accounted for, it may benefit you to obtain help with the 401(k) rollover process. Our retirement planning professionals can offer valuable assistance in completing your 401(k) rollover and avoiding potential taxes and penalties, empowering you to keep more of your hard earned retirement savings. For professional guidance with 401(k) rollovers, take advantage of a free initial consultation today.
Also Providing 403(b) Rollover Services Near Syracuse, NY & Nationwide
A 403(b) retirement account is in many ways similar to a 401(k), but 403(b) retirement accounts are offered to public employees and employees of non-profit organizations. Some examples of people who may be interested in a 403(b) rollover include:
If you are moving on to a new job and you had a 403(b) account with your previous employer, OMC Financial Services can assist with your 403(b) rollover. Done incorrectly, a 403(b) rollover could cause a reduction in your retirement savings through penalties and taxes. For over three decades, our experienced investment advisors have provided our clients with retirement plan rollover services that help keep these assets working effectively. Let's talk about how a free initial consultation with our investment professionals can provide guidance for your 403(b) rollover.
Rollover to OMC
A direct rollover of your retirement plan to an IRA managed by OMC Financial Services is easy and tax-free. Our retirement rollover experts near Syracuse, NY take care of everything! From opening your account to completing the rollover paperwork to tracking the entire process from start to finish, we handle it all.
We can help you:
There are many benefits to rolling over a 401(k), 403(b), or other retirement plan to an IRA including:
However, there may also be circumstances where it is better to keep your retirement account as is. We will review your plan and your options with you before recommending a course of action.
Take Control of Your Retirement
Rolling over your retirement plan or IRA may be one of the biggest financial decisions you ever make. Done incorrectly and you could lose a substantial amount to taxes and penalties. Why not let us help? Take advantage of a free initial consultation and see how you can benefit from a direct rollover to OMC.