Left a job, retiring soon, or worried about a market drop? Here are your options for an old 401(k), 403(b), TSP or IRA, in plain English.
| Option | Good to know |
|---|---|
| Leave it in the old plan | Simple, but easy to forget. Investment choices and costs stay the same. |
| Move it to your new employer's plan | Keeps everything in one place if the new plan accepts rollovers. |
| Roll it into an IRA | More choices, including fixed and fixed indexed annuities for protection and guaranteed income. |
| Cash it out | Usually the most expensive choice: income tax, plus a 10% penalty if you are under 59½. |
We look at your accounts, your Social Security and your income goals, then show you, side by side, what stays where and what could move into a fixed or fixed indexed annuity inside an IRA. We compare multiple carriers and show you surrender periods, caps and fees up front. You decide, on your own time.
Tai Nguyen is a Georgia licensed life insurance agent. We offer fixed and fixed indexed annuities and life insurance. We do not sell securities or manage investment portfolios. For investment or tax advice, talk with a licensed financial or tax professional.
In a direct rollover, your old plan sends the money straight to the new account, with no taxes withheld. In an indirect rollover, the check comes to you, the plan usually withholds 20% for taxes, and you have 60 days to deposit the full amount or the shortfall can be taxed.
A direct rollover from a traditional 401(k) to a traditional IRA is generally not taxable. Cashing out is taxable, and if you are under 59½ it may also carry a 10% early withdrawal penalty. Converting to a Roth IRA is taxable in the year you convert.
Yes. You can roll a 401(k) into an IRA that is held inside a fixed or fixed indexed annuity. That can protect the money from market losses and, with an income rider, turn part of it into guaranteed income for life. Annuities have surrender periods, so it is usually only part of the plan.
Sometimes that is the right call, for example if the plan has very low costs or you may use the age-55 rule for penalty-free withdrawals. We will show you the trade-offs side by side before you decide.
For most people, required minimum distributions from traditional IRAs and 401(k)s now start at age 73. They are scheduled to start at 75 for people born in 1960 or later.
Annuities are insurance products, not deposits, and are not FDIC insured. Guarantees are based on the claims-paying ability of the issuing insurer. Not tax or legal advice.
A free 20-minute call is the easiest way to see your options before you move a dollar. English or Vietnamese.
Book a Free Callor call (470) 470-5593