Retirement Plan Rollovers

At Stonepath Wealth Management, we help you transfer funds from your previous employers’ retirement plans into traditional or Roth Individual Retirement Accounts (IRAs). This transfer is called a rollover, and the benefits of a rollover are numerous. There are also certain instances where keeping the money with the employer can be beneficial; this is fully evaluated for you.

IRA vs. Employer Retirement Plan

An IRA surpasses an employer retirement plan in regards to choice, transparency, and advice available. Plans at work usually only invest your money in a limited number of mutual funds, whereas the options with an IRA are limitless: all stocks, bonds, mutual funds, and other securities are viable investments. This flexibility gives the IRA the added benefit of suiting your individual needs.

Why Rollover?

Whether you are currently with an employer or have just recently left an employer, a rollover could be in your best interest. An employer can replace mutual funds in and out of their retirement plan without your knowledge. The IRA, however, is much more transparent. With your IRA, you know where your money is invested, and any changes are done in your best interest.

If you are no longer with an employer, then it may not in your best interest for your assets to be with that employer. Whether you are retiring or moving on to a different employer, it may be in your best interest to grow your money tax-free by doing a Roth IRA Conversion or keep it tax deferred in a traditional IRA.

Other Rollover Benefits

A rollover can also help with estate planning. Oftentimes, the beneficiaries of an estate can be hurt with a major tax bill if they take the full distribution of the IRA at once; however, with a Stretch IRA this can be avoided. At Stonepath Wealth Management, we go over your situation individually and lay out all the advantages and disadvantages of keeping your money in an employers’ retirement plan, of doing a partial rollover, and of doing a complete rollover.

Please be sure to speak to your advisor to carefully consider the differences between your company retirement account and investment in an IRA. These factors include, but are not limited to changes to availability of funds, withdrawals, fund expenses, fees, and IRA required minimum distributions.

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