Register for Client Education Seminar. Learn More »

Consolidate Your Accounts by Rolling Over Your 401(k) Plan

by AOG Wealth Management

According to the Bureau of Labor Statistics, the typical person holds 11 jobs from the age of 18 to 44. Different workplaces mean multiple workplace retirement accounts. Since not all employers require you to leave their plan when you depart, you can end up with many disparate retirement accounts. Consolidating your accounts to an IRA or to your next employer’s plan gives you a clearer picture of your money. AOG Wealth Management explains:


Understanding Your Options

When leaving your job, you usually have four options for your retirement plan. You can leave the money in the plan, roll it into your new employer’s plan, put it into an IRA, or withdraw the money. As an expert in Reston wealth management and serving all of Northern Virginia and Washington, DC, we recommend reviewing your options with a financial advisor.  For example, staying with your current plan may make sense if the plan has great fund choices and low administrative costs. If not, roll it into your new employer’s plan. If neither plans offer great options, move your funds into a rollover IRA. Do not move the money to cash unless absolutely necessary because you will most likely incur unnecessary taxes and potentially pay penalties.

Rolling Over Your 401(K)

If you decide to roll over your 401(k), open an IRA, and then contact the company that runs your old plan. Ask them to transfer your 401(k) distributions directly into your IRA. Typically, you need to provide your contact information, along with the account and routing numbers for the account where the money will be sent. You will also select the type of distribution you prefer. As the leading financial advisor in Washington, DC, we suggest opting for a direct rollover if you can.

Avoiding Rollover Pitfalls

Do not wait too long to roll over your account, as this can lead to taxes and penalties. In addition, never make rash investments; diversify your portfolio instead. Do not forget about the big picture; look at all your retirement accounts to determine if they meet your financial goals. Lastly, hire a specialist in financial planning in Washington, DC and Northern Virginia, like us to help you manage your accounts.

We can help you roll over your 401(k) plan and assist you in reaching your financial goals. AOG Wealth Management provides personalized investment solutions that we base on your personal objectives, circumstances, and goals. We offer small business services, asset management services, wealth management services, and financial planning. Call us at (866) 993-0203 to learn more about rolling over your 401(k) plan. You can also schedule a complimentary consultation.

Category: Financial Advisor