IRA Rollovers
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Your retirement savings – your way
A rollover IRA lets you move your money out of a previous employer’s retirement plan or other IRA account and into an IRA that you control.
What is a rollover IRA?
A rollover IRA is an easy way to consolidate all of your retirement savings into one account.
The IRS allows for a tax-free, penalty-free rollover of your retirement savings from a previous employer’s qualified retirement plan to an IRA in your name.
Whether you are changing jobs, taking a break from work, or just looking for a new way to invest money you have in an old employer’s plan, a rollover IRA can be a great tool to stay on track for retirement success.
Benefits of a Rollover IRA
Consider Your Options
When you leave an employer, you have options available to you and your retirement savings. Consider all of the options available before you make a decision to rollover your retirement savings. In most cases, the decision to move your retirement account is yours to make.
The info to the right provides a brief explanation of the distribution alternatives that may be available to you.
It’s your retirement – let the funds you saved keep working for you.
Keep Your Money in Your Old Employer's Plan
Pros
- Tax-deferred growth
- Avoid early withdrawal penalties
- Move your savings to another retirement plan or an IRA later
- Protection from creditors
Cons
- Limited to the investment options and services offered by that plan
- May not be able to remain in the plan if your account is less than $5,000
- You can’t take a loan
Rollover to Your New Employer's Plan
Pros
- Tax-deferred growth
- Avoid early withdrawal penalties
- May be able to consolidate your retirement assets into one account
- Protection from creditors
Cons
- Limited to the investment options offered by that plan
- May have limits on how you move your money between the investment choices in the plan
Rollover to an IRA
Pros
- Tax-deferred growth
- Avoid early withdrawal penalties
- Have the flexibility to select an institution and investment options that fit your specific needs
- Choose a Roth after-tax account, if appropriate
- Consolidate your retirement assets in one convenient place as you change jobs
- Protection from creditors
- Ingham Rollover IRA: no distribution fee will apply
Cons
- Can’t barrow against your assets
- Annual fees and /or commissions may apply
Cash Distribution
Pros
- Immediate liquidation of your account
- Have greater flexibility to use the assets any way you want
Cons
- If you are under age 59-1/2, a 10% early withdrawal penalty may apply
- Distribution is subject to ordinary income tax unless the distribution is taken from a Roth 401(k)
- You can no longer grow your assets on a tax-deferred basis
- The long-term earning potential of your account is diminished – which could affect your income at retirement
IF YOU NEED HELP UNDERSTANDING YOUR OPTIONS
CALL US AT 866-786-5152
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