Are you leaving your job and wondering what to do with your 401(k)? Or maybe you just want more control over your retirement savings. A 401(k) rollover to an IRA can help you consolidate your investments, reduce fees, and expand your investment options. At Emken Tax & Financial Services, we specialize in guiding individuals through the rollover process, making it as seamless as possible.

Call us at (309) 338-3960 to learn how a rollover can benefit you!

Why Switch From a 401K to an IRA?

A 401(k) rollover is when you move money from your employer-sponsored retirement plan into an Individual Retirement Account (IRA). This transfer allows you to keep growing your savings tax-deferred while giving you more flexibility and control over your investments.

Here's why you may want to switch from a 401(k) to an IRA:

• More investment choices: IRAs offer a wider selection of stocks, bonds, mutual funds, and ETFs than most 401(k) plans.
• Lower fees: Many employer-sponsored plans have high administrative fees. An IRA can often lower those costs.
• Better estate planning: IRAs offer more flexible options for passing your savings on to beneficiaries.
• No more dependence on your employer: Once you leave a job, your old 401(k) stays with your former employer’s plan. Moving it to an IRA keeps your money under your control.

Emken Tax & Financial Services’s Rollover Process

At Emken Tax & Financial Services, we make rolling over your 401(k) simple. Here’s how the process works:

1. Open an IRA: If you don’t already have an IRA, we’ll help you open one. Depending on your retirement goals and tax situation, you can choose from a traditional or Roth IRA.
2. Request a direct rollover: Contact your 401(k) provider and ask for a direct rollover to your IRA.
3. Choose your investments: Once your money is in your IRA, you’ll need to decide how to invest it. We can help you build a portfolio that matches your retirement goals and risk tolerance.
4. Monitor your IRA: You can adjust your strategy over time to align with your changing financial needs.

What Are Your Rollover Options?

There are two main options for rolling over your 401(k) to an IRA: a direct or indirect rollover.

Direct Rollover

Also known as a trustee-to-trustee transfer, this option involves transferring your retirement savings directly from one account to another. Your employer will send the funds from your 401(k) directly to your new IRA provider. This is the preferred method since it avoids any potential tax penalties.

Indirect Rollover

The other option is to take a distribution from your 401(k) and deposit the funds into an IRA within 60 days. This method is known as an indirect rollover and can be more complex and risky. Your employer will withhold 20% of your 401(k) balance for federal income taxes. However, if you don’t deposit the full amount into an IRA within 60 days, you may face penalties and taxes on the withdrawn amount.

Transfer Your 401(k) to IRA Today

Rolling over your 401(k) to an IRA gives you more control, better investment options, and potentially lower fees. If you’re unsure what to do with your old 401(k), Emken Tax & Financial Services is here to help. Don’t leave your retirement savings in the hands of an old employer. Take control today.

Looking to rollover a 401k to an IRA? Contact us at (309) 338-3960.