Does your 401k to IRA rollover make sense for your retirement? It likely does if you’re considering its impact in retirement. You can schedule an appointment with one of our Retirement Experts to look at your situation and help you plan for your future. Call us at (920) 544-0576 or go to
Timestamps:
0:00 Going Beyond the “Normal” Reasons to Rollover Your 401k
0:33 The Often Discussed Reasons…
2:08 Surprising Reason #1
4:00 Surprising Reason #2
5:05 Surprising Reason #3
6:38 Surprising Reason #4
7:24 Surprising Reason #5
8:46 Surprising Reason #6
9:22 Fixing a Key Problem with a 401k Rollover
#401krollover #retirementincomeplanning #retirementplanning
– – – – – – – – – – – – – – – – – – – –
Always remember, “You Don’t Need More Money; You Need a Better Plan”
🍿 Subscribe to our channel:
🏆 Join our Weekly Email Series:
📈 Talk with us about your retirement plan here:
📚 The New 60/40: How the Next Generation of Retirees Can Achieve Radical Financial Freedom through Better Safe Investing –
Safeguard Wealth Management is a Registered Investment Advisor in the State of WI. Safeguard Wealth Management is not an insurance provider. All content on Youtube is for informational purposes only and should not be taken as personal advice for your situation. You can read more disclosures at …(read more)
LEARN MORE ABOUT: IRA Accounts
TRANSFER IRA TO GOLD: Gold IRA Account
TRANSFER IRA TO SILVER: Silver IRA Account
REVEALED: Best Gold Backed IRA
Write an article about 6 (SURPRISING) Reasons to Do a 401k to IRA Rollover BEFORE You Retire… in English
Wait, so for reason 5, even if you designate your child as the beneficiary in the 401k, that gets disregarded and it is your spouse? That sounds deceiving.
Rolling a 401(k) to the same custodian to reduce out-of-market time is brilliant!
One curve ball about rolling over in chunks: in my experience, ~ 50% of 401(k) plans require 100% of funds to be withdrawn if any funds at all are withdrawn.
What if you stopped working in December of a year and get paid a large payout in the next year. Can you contribute pre tax to your personal 401K IRA and then immediately do a roth conversion? What about a post tax contribution to an IRA?
As a young, career change advisor, I really appreciate how in depth your videos always are. I always learn something new.
I learned a few things here but will continue to keep 70% in my investments in my 401k my only reason for doing that is protection for lawsuits. My investment strategy is the same in both accounts. So far I think it is worth all the rules and hassles of the 401k. I feel this should have been mentioned.
Appreciate your great information on this video, if we do in plan 401k Roth conversion, will pro rata rule apply to the conversion?
After my 401k crossed 1.5 million in 2019 I did an in service rollover with 70% of my Fidelity BrokerageLink account to a rollover pretax and Roth IRA.
My 401k was self directed anyway and can do the same as IRA so that wasn't an issue.
I just wanted to set things up for income payout ahead of time.
Retired debt free at 49 in 2020. Retirement portfolio crossed two million.
Thanks to Covid I got an early out package with paid healthcare and pension with other savings,taxable investments,passive income,and 20 year emergency fund so no financial issues.
Good video. I plan on converting to Ira after retiring for the flexibility, might keep some in the 401k but I never thought about the mandatory withholding differences. Good point.
In reason 3, RMD complexity, you said that a couple can aggregate their IRAs and take the total RMD from a single IRA. Don't they need to do the aggregation of IRAs separately for each spouse? In other words, doesn't each spouse need to take his/her own RMD from his/her own IRAs? After all, IRAs are individual not joint accounts.
Thank you!
Suggestion for future subject, cover what IRMAA brackets will be or an estimate in 2024 (based on 2022 income) for us to plani end of year. income this year. As always great video
You missed a negative of rolling over. I currently have a large after tax IRA, a pretax IRA and a 401k. When I retire and move to a zero income tax state I will be doing Roth conversions that will be prorated based on the total size of all my IRAs. So if I don't roll over the 401k, I only pay taxes on about 75% of the conversion. If I do roll over, I end up paying on about 90%. Much higher tax bill and since I am only converting some of my funds an important one. Once I am done with my conversions then I will roll my 401k over for all the advantages you cite.
I did my 401K to IRA rollover at Fidelity a number of years ago. I was worried that I would be out of the market for a day. I was assured that I would stay in the market during the rollover by my Fidelity advisor. Turns out my advisor was wrong, the market had a big up swing so I was out about $45k. I called my advisor immediately and complained. To my amazement Fidelity adjusted my account so I was made hole. What a standup company Fidelity is.
1. Read 401K/403B protect from law suits and bankruptcy. Some states give same protection to IRAs, but may not be solid 401K/403B protection.
2. Heard 403Bs are not subject to RMD?
They make it easy to put money into 401K/403B, but make it difficult to take money out. If they allow only pro-rata then they need to pay for losses when money is taken out of stock funds while enough money is in stable value fund. This is unacceptable, they are forcing people to incur losses.
TIAA 403B allows distribution from a specific fund or pro-rata, your choice. Vanguard 403B: Newport administers, their system can only handle pro-rata, forces loss of your money when money comes out of declined stock funds while having sufficient money in stable value fund.
Good video, but the key reason I will not roll over into an IRA is the loss of ERISA creditor protections. I feel that every discussion of a 401k to IRA rollover should highlight this as perhaps the biggest negative to the rollover which should be balanced with the positives.
#7 – Roth 401Ks have RMDs
I think another estate related one is if you you are leaving it to a secure act EDB (like a disabled child). I saw a Kitces webinar that said the company 401k plan does not have to allow the lifetime scretch and can still dictate 10 year period.
like.