How to Roll Over a 401(k): Help Minimize Fees & Increase Active Management
Langan Financial Group is an award-winning and highly-rated financial planning firm with over 100+ 5-star reviews on Google and the Better Business Bureau.
Our financial advisors provide personalized financial planning designed according to your:
- Financial goals
- Risk tolerance
- Time frame
Learn how we can help you roll over your 401(k) into an actively managed investment account to help you reach your financial goals.
401K Rollover Testimonials
This is a great investment firm. Their strategy is individualized to your situation.
The team is ready to help and answer questions.
The team at Langan Financial Group has been great to work with.
Very knowledgeable about what's going on in the market and providing guidance to meet personal financial goals.
Very friendly and responsive staff. Great customer service!
What is a 401(K) Rollover?
Your rollover options include:
- To an IRA
- Convert to a Roth IRA
- Keep it at the old 401(K)
- To a new 401(K) (if changing jobs)
Do I Have to Pay Taxes if I Roll My 401(K) Into an IRA?
The rollover transaction is not taxable unless:
- The rollover check is uncashed for 60 days
- You are doing a 401(k) to Roth IRA conversion
Does It Cost Money to Roll Over a 401K?
There can be a distribution fee charged by the record keeper when rolling over your 401(K) accounts.
However, financial advisors are likely to receive compensation for managing your assets.
The Essentials of 401(k) Rollovers: What You Need to Know
When you leave a job or retire, rolling over your 401(k) into an IRA can give you more control over your investments. Here’s everything you need to know about the process and why it might make sense for you.
1. How a 401(k) Rollover Works
A 401(k) rollover involves transferring your retirement savings from an employer-sponsored 401(k) plan into an Individual Retirement Account (IRA).
IRAs offer more flexibility, allowing access to a broader range of investments and easier withdrawals.
2. Different Types of Rollovers
There are different types of 401(k) rollover options if you are considering moving your 401(k).
- Traditional IRA: Funds are transferred pre-tax, and taxes are deferred until withdrawal.
- Roth IRA: Contributions are after-tax, but withdrawals are tax-free in retirement.
- Self-Directed IRA: Allows for investments in alternative assets like real estate or cryptocurrencies.
It is also important to understand that you do have the option to keep your funds in your current plan, disburse them, or roll them over to another plan. It is best to speak with an experienced financial advisor who can help guide you to the best decision for your situation.
3. How Long Does the Rollover Take?
The rollover process typically takes 3-4 weeks but can be delayed by paperwork or uncooperative institutions.
In rare cases, rollovers may take several months if complications arise.
Why Choose Langan Financial Group For Your 401(K) Rollover?
Langan Financial Group takes a very proactive and customer-focused approach. We carefully listen to your concerns and goals prior to providing any solutions. We want to design a personalized approach to help you achieve your financial goals.
When helping people with rollovers. We look at all the options and provide explanations for each one’s pros and cons. We want you to be an informed investor and be comfortable with whichever path you decide is right for you.
We will also discuss:
- Market conditions
- Risk tolerance
- Time frame
As we see issues arise, we will reach out ahead of time to discuss potential changes to your rollover strategy.
At Langan Financial, we are dedicated to helping you with your financial goals. That is why we have over 100 - 5-star reviews on Google and Better Business Bureau, testifying to our dedication towards our clients.
401 (K) Rollover FAQs
These are the most common 401(K) Rollover questions we receive.
If you have any additional questions, please do not hesitate to reach out to our office.
We are happy to help you however we can. We can be reached at 717-288-1880.
What Are My 401(K) Rollover Options?
Your 401(K) roll over options include:
- To an IRA
- Convert to a Roth IRA (this causes different tax consequences)
- Keep it at the old 401(K)
- Move it to a new 401(K) (If you are changing jobs)
How Do I Roll Over a 401(K)?
Rolling over a 401(k) is an easy process to do. By working with a financial advisor, you will need to:
- Decide what type of account you would like to roll over the money
- Decide what type of investment portfolio you would like
- Complete account paperwork and open up your account
- Fill out the rollover paperwork
Can You Roll Over a 401(K) Into a Roth IRA?
Yes, you can. If your funds are already “Roth”, you can roll them into a Roth IRA. If you are interested in turning Pre-Tax contributions into Roth, you would need to complete a “Roth conversion” which would cause you to report the money as income and pay ordinary income tax on it.
Depending on your situation, this may be beneficial for you. Doing a simple scenario planning analysis, we can forecast what your tax fees will be, allowing you to determine if converting to a Roth would fit your best interest.
Should I Roll Over My 401k Into An IRA?
Typically, for most individuals, consolidating group retirement accounts such as 401(k)s or 403(b)s to an IRA is the best choice.
Rollovers can provide:
- Lower fees
- Beneficiary flexibilities
- More investment options
- Potential for Roth IRA conversion
- More control over your investments
- Increase communication and management
- Easier management due to consolidation of accounts
What Happens If I Don’t Roll Over My 401(k)?
There are situations in which rolling over a 401(K) is not always the best option. In some instances, it may be best to either leave it in your current 401(K) account or roll it into a new group retirement plan.
If you leave your 401(k) account in the group retirement plan, it will continue to stay invested in there. You will continue to receive the same level of communication and ability to manage it.
If you are no longer employed with the company, you will not receive the company’s match and may not be able to continue contributing to your retirement.
If you roll over to a new job’s group retirement plan, depending on the plan’s features, you may be able to receive a match and start contributing. This would depend on the company’s governing plan documents.
Is It Too Late to Roll Over My Old 401(K)?
No, it is never too late to roll over an old 401(k) account.
Reserve Your Free 401(K) Roll Over Consultation
Schedule a free chat with our 401(K) rollover advisors. With over 100 - 5-star reviews, learn why so many families trust us to manage their assets.
Our team can work with your busy schedule. While our standard office hours are 8:00 am to 5:00 pm, we are available evenings and weekends by appointment to help cater to your needs.
We can schedule appointments via:
- Zoom
- Phone
- In-person
Whatever your preference is and wherever you are, we will do our best to meet with you.
Give us a call at 717-288-1880 to see how our advisors can support your 401(k) roll over planning needs.
FREE Benchmark Comparison Services
Financial Advisor Locations:
Camp Hill, PA Financial Planning Office
York, Pa Financial Planning Office
Harrisburg, PA Financial Planners
Communities Served:
Disclosure: Check the background of your financial professional on FINRA's BrokerCheck. The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Cambridge and Langan Financial Group, LLC. are not affiliated. Cambridge Investment Research Advisors, Inc. a Registered Investment Advisor. Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a broker-dealer, member FINRA/SIPC, to residents of: AL, AZ, CO, DE, FL, GA, IA, KY, MD, NJ, NM, NY, NC, OH, PA, TX, VA, WI Cambridge and Langan Financial Group does not offer legal advice. Estate planning services are in regards to your overall financial plan. Always be sure to speak to a legal professional in regards to specific legal matters. Fixed insurance services offered through Langan Financial Group.
Testimonial/Endorsement Disclosure: The testimonials may not be representative of the experience of other customers. The testimonials are no guarantee of future performance or success. All of the testimonials/endorsements are clients with the exception of Steven Martinez of York SPCA. There was no cash nor non-cash compensation for any of the testimonials provided.
© Langan Financial Group
Harrisburg, PA Office
Address: 1863 Center St, Camp Hill, Pa 17011
Phone: 717-288-1880
York, PA Office
Address: 3405 Board Rd, Suite 200, York, Pa 17406
Phone: 717-773-4085
