Thursday, July 19th 2018

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Why rollover 401k?

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30th Oct 2009 by Joseph Pousada

Depending on the provisions of the plan you have been participating in, upon termination some will stipulate that a disbursement must be made to you within a specified timeframe. If you accept the disbursement and decide not to roll over the IRA it may be considered income for the year in which the disbursement was made and depending on your age may have an additional premature withdrawal tax penalty. If you feel you qualify for a hardship exception, it is important to discuss your specific situation with your tax advisor. The rollover can typically be done to an IRA rollover or to a new 401k you are participating in. It is important to discuss all your options with your financial advisor to ensure that your decision is in line with your overall investment strategy.

Reference:
http://www.dol.gov/ebsa/faqs/faq_compliance_pension.html


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20th Oct 2009 In Retirement 1 Answers | 417 Views

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