当你离开原雇主时，你在原雇主那里的401k一般要转入新雇主计划，转入传统IRA或转入Roth IRA。有些雇主允许员工不离职也可以将401 K转入其他账户。该怎么选择呢？Sherry 邀请小伙伴们看本期视频，先了解清楚每种选择的优缺点，再结合自己的年龄、目前收入、有没有其他投资方式等因素作出最适合自己家庭的选择。
看完我的第五期关于401K的视频以后，你就比90%的美国居民对401K了解得更多了。相信你在退休规划上段位已经提高，不但可以完善自己的各种退休计划，还可以讲给朋友们听，帮助到别人啦！…(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

In recent years, retirement planning has become increasingly important as individuals aim to secure their financial stability during their golden years. One aspect of retirement planning that requires careful consideration is the management of retirement accounts, such as a 401(k). In this article, we will delve into the topic of the 401(k) rollover/conversion and explore how it can be a beneficial strategy for retirement planning.

A 401(k) is an employer-sponsored retirement savings plan that allows employees to contribute a portion of their salary to a tax-advantaged investment account. Contributions made to a traditional 401(k) are often tax-deductible, and the investments grow tax-deferred until withdrawal during retirement. However, when individuals leave their job or retire, they often face a decision regarding what to do with their 401(k) account. This is where a rollover/conversion comes into play.

A 401(k) rollover/conversion refers to transferring the funds from an existing 401(k) account into another tax-advantaged retirement account, such as an individual retirement account (IRA). There are two primary types of rollovers: direct rollovers and indirect rollovers.

A direct rollover involves transferring the funds from the 401(k) directly to the new retirement account. This method ensures that the individual does not have to touch the transferred funds and avoids any potential tax consequences or penalties. On the other hand, an indirect rollover requires the individual to receive the funds from the 401(k) and then redeposit them into the new retirement account within a specified time frame, typically 60 days. If the funds are not redeposited within this time frame, they may be subject to income taxes and early withdrawal penalties.

One of the main benefits of a 401(k) rollover/conversion is increased investment flexibility. Unlike a 401(k), which often limits investment choices to a selection of mutual funds chosen by the employer, an IRA generally offers a wider range of investment options. This enables individuals to personalize their investment strategy and potentially achieve higher returns.

Additionally, a 401(k) rollover/conversion can simplify retirement account management. Instead of having multiple retirement accounts scattered across different employers, consolidating them into one IRA can streamline the tracking and monitoring process. With a single account, individuals can better control their asset allocation and monitor their retirement savings progress.

Another advantage of a 401(k) rollover/conversion is the potential for more favorable withdrawal options. Some traditional 401(k) plans require individuals to begin taking required minimum distributions (RMDs) at age 70½. On the other hand, Roth IRAs do not impose RMDs during the original owner’s lifetime. By converting a traditional 401(k) into a Roth IRA, individuals can potentially delay or avoid mandatory withdrawals, allowing their funds to grow tax-free for a more extended period.

However, it’s essential to consider potential drawbacks before proceeding with a 401(k) rollover/conversion. For example, an individual who plans to retire before the age of 59½ should carefully evaluate their potential tax liability. While withdrawals from traditional 401(k)s before this age are typically subject to an additional 10% early withdrawal penalty, certain exceptions may apply. By rolling over the funds into an IRA, individuals could lose access to these exceptions and potentially incur penalties for early withdrawals.

In conclusion, a 401(k) rollover/conversion can be an effective retirement planning strategy for individuals looking to optimize their retirement savings. By transferring funds from a 401(k) into a different tax-advantaged retirement account, individuals can gain investment flexibility, simplify account management, and potentially benefit from more favorable withdrawal options. However, it’s crucial to weigh the advantages against potential drawbacks, considering factors such as age, tax liability, and individual circumstances. Seeking professional financial advice is highly recommended to ensure that the decision aligns with individual goals and objectives.