Should You Roll Over Your 401(k)?

Get the Information You Need About Your 401(k) Options Before You Take Action

When you change jobs or retire, deciding what you'll do with your 401(k), 403(b), government 457 or other qualified employer sponsored retirement plan (QRP) is important. That's because each of your options may have a different effect on your retirement savings. Complete the form to get our free "Options for Your Retirement Plan Savings" guide and learn about your retirement plan distribution options.

Common Goals for Other Investors in Your Situation

When it comes to deciding whether you should roll over your 401(k) or other employer sponsored retirement plan into an IRA, you need to understand the goals you have for your retirement savings. Do you want to:

  • Continue to save for retirement
  • Avoid unnecessary income taxes and penalties
  • Have flexibility in choosing your investments
  • Make withdrawals from your retirement savings when you need to

Our free guide discusses your options for each of your goals. We also include a timely report on the Key IRA Impacts of the 2020 CARES ACT that includes information on penalty-free distributions from IRAs and certain retirement plans as well as the temporary waiver of Required Minimum Distribution (RMDs) Rules (Section 2203) for Defined Contribution Plans, including 401(k), 403(b), 457(b), as well as IRAs.

Find Out Whether Rolling Over Is Right for You

Our free "Options for Your Retirement Plan Savings" guide discusses your distribution options for your QRP and can help you decide whether rolling over your 401(k) or other QRP is the right choice for you. It also answers important questions, such as "How will my retirement savings be affected by my distribution option?"

Complete the form to get a free copy of the guide.

Please keep in mind that rolling over assets to an IRA is just one of multiple options for your retirement plan savings. Each of the following options is different and has distinct advantages and disadvantages.

  1. Roll assets to an IRA
  2. Leave assets in your former employer’s plan, if the plan allows
  3. Move assets to your new/existing employer’s plan, if the plan allows
  4. Cash out or take a lump sum distribution

When considering rolling over assets from an employer plan to an IRA, factors that should be considered and compared between the employer plan and the IRA include fees and expenses, services offered, investment options, when penalty-free distributions are available, treatment of employer stock, when required minimum distributions begin, and protection of assets from creditors and bankruptcy. Investing and maintaining assets in an IRA will generally involve higher costs than those associated with employer-sponsored retirement plans. You should consult with the plan administrator and a professional tax advisor before making any decisions regarding your retirement assets.

Traditional IRA distributions are taxed as ordinary income and may be subject to a 10% federal tax penalty if distributions are taken prior to age 59½.

Wells Fargo Advisors does not render tax or legal advice.

Request Your Copy of the Guide

To get our "Options for Your Retirement Plan Savings" guide, please complete the form.

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