Essential reasons to roll assets to an IRA after you leave a job

Managing your income streams can bring about challenges but can be reduced by consolidating your income and assets in one place, such as with a “rollover” to move assets from your 401(k), 403(b) or other retirement plan to an IRA. Here’s why rolling retirement plan assets to an IRA may be a good strategy: [emember_protected custom_msg=”Click here and register now to read the rest of the article!”]

1. Professional advice

Professional advice can be customized to achieve your financial goals through a tailored plan to fit your needs and your overall portfolio.

2. Flexibility and choice

You could invest the same holdings in an IRA account and still have the option to change your allocations in response to economic or personal reasons and even expand on investment choices.

3. Control fees and expenses

Consolidating retirement assets can eliminate redundant maintenance and management fees. Some 401(k) plans charge higher maintenance fees on accounts of former employees.

4. Taxes

Rolling a 401(k) into an IRA allows you to continue growing retirement savings tax-deferred or tax-free (depending on the contribution type). This enables you to avoid any untimely or unnecessary taxation as well as penalties. As federal and state tax rules are subject to frequent changes, you should consult with a qualified tax advisor prior to making any investment decision.

5. Protecting your heirs

A traditional IRA allows you to skip generations when designating a beneficiary, which allows them to spread distributions over a much longer time frame.

6. Simplification

Consolidating retirement plan assets into a single IRA account makes it easier to monitor and rebalance your asset allocation strategy, receive year-end tax information and review consolidated statements regularly.

Raymond James & Associates, Inc. member New York Stock Exchange/SIPC



BIO: Brad Dantzler, with 18 years of experience as a financial advisor, has been a President’s Club member for six years. He previously served as a financial advisor with Bank of America and Edward Jones. Brad has a BA in ag economics from UF and an MBA from Nova Southeastern University. He is active in his church and community, and is currently president of the Winter Haven Library Board and a Winter Haven city commissioner.

Leave a Comment

Your email address will not be published. Required fields are marked *

Accessibility Toolbar