401k Rollover Near Northwest Indiana

Maintaining retirement savings accounts is an important part of planning for your future. But with so many different retirement accounts to choose from—all with different rules and requirements—knowing which is best for you can be confusing. 

One of the most common types of retirement accounts is a 401k. At Harvest Wealth Partners, we can answer all of your questions about 401ks and 401k rollover options. For help with your 401k rollover near Northwest Indiana, reach out to our team of financial professionals directly today. 

What Is a 401k?

A 401k is a type of retirement savings plan. Offered by many employers, 401ks are tax-advantaged. When an employee signs up for a 401k account, they agree to have a percentage of their paycheck deposited directly into an investment account each pay period. Then, the employer will match some or all of the contribution. In a traditional 401k, employees’ contributions are made pre-tax, which means that no tax is paid on the amount contributed at the time that the employee puts it in the 401k. When the money is withdrawn, a tax is paid.

What Is a 401k Rollover?

401ks are for employees whose employers offer 401k savings options. As such, if you leave a job where you have a 401k, you’ll need to understand your options. There are four options for your 401k plan when you’re leaving an employer (for non-retirement reasons): 

• You can cash out your 401k. Cashing out your 401k probably isn’t a good idea, as you’ll pay a penalty if you do this before retirement age. 
• You can consolidate your 401k into your new employer’s retirement savings plan. If you start a new job, it can be difficult to track different savings accounts. In many cases, especially when your new employer is offering contributions to your 401k and strong portfolio options, moving your existing 401k into your new employer’s retirement savings plan is encouraged.
• You can keep your 401k with your former employer. In some situations, it may be advantageous to keep your 401k plan with your former employer, even if you’re no longer working there. This is the case when your new employer’s plan options are more limited. Talk to a professional to learn more. 
• You can roll over your savings into a new retirement account type. Finally, you can roll over your 401k into a different type of retirement savings account, such as an IRA. consolidating different retirement savings accounts into a single IRA or 401k is often recommended. Fortunately, the mechanics of rolling over your existing account into a new one is pretty straightforward. When you work with Harvest Wealth Partners, we can help you to open a new IRA account, and then we can work with your 401k plan administrator to manage a direct rollover.

Learn More About 401k Rollovers Near Northwest Indiana Today

If you have questions about retirement accounts and how to manage your rollovers, please reach out to our team at Harvest Wealth Partners today. We can answer all of your questions about 401k rollovers near Northwest Indiana and facilitate the process. Reach us today by phone or online to get started.