By: Guest Blogger Erik Brown, CFP
This educational, third-party article is provided as a courtesy by Erik Brown, CFP® , Agent, New York Life Insurance Company. To learn more about the information or topics discussed, please contact Erik Brown, CFP® at 614-793-2121.
Like most people, you’re probably hearing a lot about rollovers these days. That’s because with so many people changing jobs and switching careers, the proper handling of retirement assets is on a lot of folks’ minds. It’s an important issue that can sometimes get a bit cloudy.
What is a rollover?
Simply put, a direct rollover is a transfer of funds from one tax-qualified retirement plan to another, typically to an Individual Retirement Account (IRA). If you changed jobs and still have money sitting in a retirement plan with a prior employer, or if you have recently retired, you are eligible for a rollover.
Why a rollover?
While everyone’s personal circumstances are different, there are some compelling reasons why a rollover into an IRA may be a strong consideration.
You have the ability to choose from among many different funding vehicles as a destination for your rollover. With a broad selection of options available, you can better choose products that best fit your needs and preferences.
Freedom from the plan restrictions that may apply to your employer-sponsored program.
The ability to take a penalty tax-free withdrawal for a first-time home purchase (up to $10,000 which are still subject to taxes) or qualified higher educational expense.
An IRA may provide you with better estate planning options
Taking time to consider whether a rollover is right for you can help you build a more sound financial future.
To learn more about the information or topics discussed, please contact Erik Brown, CFP® , agent New York Life Insurance Company at 614-793-2121.
Neither New York Life, nor its agents, provides tax, legal, or accounting advice. Please consult with your professional advisor for tax, legal or accounting advice.