Old Dominion Investment & Retirement Advisors

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Address:

1897 Billingsgate Circle
Suite B
Henrico, VA 23238

Phone:

804 741-4972

Fax/Other:

(804) 412-6114

IRA and 401K Rollovers in Henrico VA | Old Dominion Investment & Retirement Advisors

IRA Rollovers and 401K Rollovers

What You Need To Know

Some people just call us and say that "they want to Rollover My 401K" or "want to do an IRA Rollover from a 401K" or "want a 401K Rollover IRA".  First you must understand that there are many 401K Rollover Options and many 401K Rollover Rules. We are here to help. We have over 25 years of experience with 401K Rollovers and IRA Rollovers. To learn more, keep reading or give us a call.


Rollover IRA – a good home for your retirement savings.


When you leave your job, your employer-sponsored retirement plan doesn’t automatically follow you. You’ll have to decide what to do with the money you’ve saved in your employer-sponsored retirement plan.

Doing a 401K Rollover to a Rollover IRA can help protect your retirement savings from immediate taxation and premature distribution penalties as well as continue to provide you the potential for tax-deferred growth leading up to and into retirement.

Just say no to spending your retirement savings.

Taking the cash from your employer-sponsored retirement plan immediately may be a tempting choice for your retirement assets, but that’s a decision you may regret later. Here’s why:

  • Your employer will be required to withhold 20% from your plan because you’ll have to pay current income taxes on the amount withdrawn, and when you calculate State taxes that you will owe and potential early withdrawal (if you are under age 59 1/2) penalties, taking the cash may mean reducing your retirement plan savings by nearly a third (depending on your income tax bracket)
  • Keep in mind there is a 60 day window to put the money into another "qualified plan" but then you will have to wait until the next April to be able to get the 20% back withheld for taxes. It can get really messy so call us before you decide.

 

The benefits of a 401K Rollover to a Rollover IRA.

A Rollover IRA:

  • Helps you avoid current taxation and penalties
  • Allows your retirement savings the potential to continue to grow tax-deferred and compound interest over time.
  • Allows you to roll over assets from other qualified plans into the IRA or make additional contributions (up to annual limits)
  • Allows you to convert your Rollover IRA to a Roth IRA, if eligible.

Rollover IRAs for retirees.

If you’re leaving your job to retire, you may also want to consider a Rollover IRA.

  • your earnings will continue to have the potential to grow tax-deferred
  • additional annual or rollover contributions are allowed
  • you may convert your Rollover IRA to a Roth IRA, if eligible
  • You maintain better control and can simplify your record keeping
  • You may have additional beneficiary options when you rollover your 401K to a Rollover IRA
  • You may reduce the costs of your 401K

Note:  Taking into account your personal situation, you may want to consider your options, such as: keeping your assets where they are; withdrawing your assets (taxes are generally due upon withdrawal and any applicable tax penalties that may apply): or your may choose to rollover your assets to an employer-sponsored retirement plan that accepts rollovers, or to another eligible vehicle. 

Before transferring assets, carefully consider the features of both the existing and the new product for differences in costs, surrender charges and other important aspects.  There may also be tax consequences associated with the transfer of assets. Rollover assets may be subject to an IRS 10% premature distribution penalty tax.  Consult with a financial professional regarding your particular situation.

Consolidating your accounts.

If you’ve changed jobs frequently over the years, you may have several qualified retirement plans you’ve left in previous employers plans or rolled over into IRAs. So now you’re juggling statements and other paperwork.


Let Us do the legwork for you.

Whether you’re changing jobs or retiring, or if you want to consolidate your 401K and other retirement accounts, we can help you expertly move your money from your current plan(s) to a Rollover IRA – so you don’t have to handle the money or worry about withdrawal taxes or penalties.

If you live in Richmond, Henrico County, Hanover County, Chesterfield County, Goochland County or Powhatan County, or anywhere else in Virginia, North Carolina or Maryland and would like to learn more about a 401K Rollover or IRA Rollover, call us at (804)741-4972.