Broker Check

1605 West Candletree Drive Suite #108 Peoria, IL 61614

309-589-0180
todd.hasty@lpl.com
Client Login
Nash-Hasty Investment Services, Inc. Home
Nash-Hasty Investment Services, Inc. Home
  • Home
  • Our Process
  • Who We Serve
  • About 
    • Our Values
    • Our Team
    • Useful Links
  • Services 
    • Retirement Planning
    • Investments
    • 401(k) Rollovers
  • Resources 
    • Blog
    • SmartVestor
    • Retirement
    • Estate
    • Investment
    • Insurance
    • Tax
    • Money
    • Lifestyle
    • Tools
    • Glossary
    • Tax Resources
  • Contact
  • Life Deposit Box
Client Login

401(k) Transition Assistance

401(k)  Transition Assistance

401(k)s are an alternative to traditional pension plans and offer more control for the employee. One of the features of a 401(k) is that you can roll it over from one employer to another. A plan participant leaving an employer typically has four options (and may engage in a combination of these options), each choice offering advantages and disadvantages.

  • Leave the money in his/her former employers plan, if permitted
  • Roll over the assets to his/her new employer's plan, if one is available and rollovers are permitted
  • Roll over to an IRA
  • Cash out the account value

There are a few important factors to consider before you take a cash withdrawal from tax-saving retirement plans. For example, did you know the IRS counts a 401(k) as income and charges penalties and fees on early withdrawals? If you're leaving your job, you might consider other options instead of taking a cash withdrawal.

  • 401(k) Rollovers: This involves transferring funds from a 401(k) to an individual retirement account (IRA).
  • Roth IRA Conversions: This involves transferring funds from a tax-deferred IRA to a tax-exempt Roth account.
  • Retirement Spending Needs: We help you estimate and save the amount of money needed to live comfortably in retirement.
  • Retirement Medical Costs: We help prepare for any medical expenses that may arise during retirement.
  • Risk Management in Retirement: We review the risks you may encounter in retirement, such as unforeseen medical expenses or tax increases.
What is retirement planning?

401(k) Plan Basics

401(k)s are an alternative to traditional pension plans and offer more control for the employee. One of the features of a 401(k) is that you can roll it over from one employer to another.  The new plan may have lower fees or investment options that better support your financial goals. Rolling over your old 401(k) into your new company’s plan can also make it easier to track your retirement savings, since you’ll have everything in one place. 

There are a few important factors to consider before you take a cash withdrawal from tax-saving retirement plans. For example, did you know the IRS counts a 401(k) as income and charges penalties and fees on early withdrawals? If you're leaving your job, you might consider other options instead of taking a cash withdrawal.



Traditional 401(k) vs. Roth 401(k) Plans

Many people set up their 401(k) plans to make withdrawals for major life purchases, and to use the funds as income after retirement.
There are two kinds of 401(k) plans offered by employers. The Traditional 401(k) is a pre-tax retirement savings plan where no income tax is applied until withdrawals are made. Taxes are deducted directly from an employee's paycheck in regular increments.
A Roth 401(k) is a post-tax retirement plan with no additional taxes imposed upon qualified withdrawal. This means that people who contribute to Roth 401(k) plans can make withdrawals tax-free.
A financial advisor can help employees choose investments like stocks, bonds, certificates of deposits, ETFs, and mutual funds.
With traditional IRA plans, no income tax is applied to employee deductions or investments until it is time to withdraw.

What Are IRA to Roth Conversions?

The Benefits of 401(k) Rollovers

One benefit of a 401(k) rollover to IRA is that the account maintains its pre-tax contribution status.

Employees who roll over 401(k) funds to IRAs may have more investment options with a brokerage than with an employer. They can invest in other options to seek to increase their likelihood of achieving their financial savings goal at retirement.


Schedule Your Complimentary Consultation

Frequently Asked Questions

  • Can I roll over my retirement from another employer?
    There are a few options available for managing your 401(k) when you leave your job or get a new employer. When you choose 401(k) rollover options, rolling over your 401(k) to a new employer's plan is an option as long as the new employer offers retirement savings options. Depending on the plan, you may be able to borrow money from your account
  • Do I lose money when I roll over my 401(k)?
    In most cases, you won't lose money when you roll over an IRA. A rollover of funds will move your 401(k) balance from your original account to a new account. 
  • Should I roll over from my 401(k) to an IRA?

    If you're wondering whether to roll your 401(k) into an IRA, there are a few factors to consider. 401(k) plans offer protection from creditors under federal law.  Traditional IRAs require you to take minimum distributions beginning at age 72. 

Have more questions about IRAs?

Don't navigate this difficult process alone. Let us help you to better understand all of your options, to find out more about the Roth IRA conversion process and if it is the right fit for your financial needs.

Want to go over your 401(k) distribution optins?

 A financial advisor can help you understand your choices.

Let's Connect

Thank you!
Oops!

Contact

Office: 888-850-8635

Toll-Free: 888-850-8635

1605 West Candletree Drive

Suite #108

Peoria, IL 61614

todd.hasty@lpl.com

Quick Links

  • Retirement
  • Investment
  • Estate
  • Insurance
  • Tax
  • Money
  • Lifestyle
  • All Articles
  • All Videos
  • All Calculators
  • All Presentations

Check the background of your financial professional on FINRA's BrokerCheck.

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. Some of this material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named representative, broker - dealer, state - or SEC - registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.

We take protecting your data and privacy very seriously. As of January 1, 2020 the California Consumer Privacy Act (CCPA) suggests the following link as an extra measure to safeguard your data: Do not sell my personal information.

Copyright 2022 FMG Suite.

Securities and Advisory services offered through LPL Financial. A registered investment advisor. Member FINRA & SIPC.

The LPL Financial representative associated with this website may discuss and/or transact securities business only with residents of the following states: AR, FL, GA, IL, IN, LA, MI, MS, MO, OH, OR, SC, TX, WA, WI.