Retirement and Financial Planning

401k Rollovers

401k Rollovers: IRA Rollovers

A traditional Individual Retirement Account (IRA), a 401k account, a 403b account, etc.—all of these qualified retirement accounts are tax-deferred, which means no income taxes have yet been paid on them. One of the downsides of tax-deferred accounts is that every year, millions of retired Americans starting at age 70-1/2 are forced to take Required Minimum Distributions (RMDs) from these accounts and pay ordinary income taxes on the money withdrawn.

The rules and formulas for RMDs can be complex, and money must be taken out by midnight, December 31st each year—there is no grace period to April 15. Penalties are stiff if done wrong—50% plus the tax due! Many retirees are surprised to find how much tax they owe; some even have such a high amount of annual combined income that their Social Security benefits also get taxed.

NOTE: Roth IRA accounts are after-tax retirement accounts which do not require that RMDs be withdrawn every year.

Rollovers and IRA Solutions in North Manchester, IN

United Financial Group has a broad portfolio of IRA/RMD solutions that can give you the freedom to withdraw your RMD each year and still be able to leave a generous death benefit to your heirs. Would you like to take RMDs and still be guaranteed a death benefit? We can’t change the RMD law, but we can give you the opportunity to leave a lasting legacy for those you care about the most.

At United Financial Group, we work closely with our clients to help them make the best decisions possible about income and retirement planning regardless of current economic conditions. We are passionate advocates for our clients and believe deeply that they should retain, grow and transfer all that they have worked so hard for. Contact us today and let us craft an individualized retirement income plan that is as unique as you are.

401(k) Rollovers

In most cases, when you leave an organization or retire, you should do rollovers with tax-deferred accounts like 401k plans into self-directed accounts where you can control your own money and choose your own investments. When you do 401k rollovers or IRA rollovers, you can transfer your money to any type of account–from a CD to an annuity to many other types of financial products. We’ll present options, explore pros and cons, and help you determine what might be best for you and your retirement.

Did you know?
If you are age 59-1/2 or older and still working, you can do a rollover or transfer up to 80% of your 401k money into your own retirement account!