Time to consider a rollover?

Like most people, you’re probably hearing a lot about rollovers these days. That’s because with so many people changing jobs and switching careers, the proper handling of retirement assets is on a lot of folks’ minds. It’s an important issue that can sometimes get a bit cloudy.

What is a rollover?

Simply put, a direct rollover is a transfer of funds from one tax-qualified retirement plan to another, typically to an Individual Retirement Account (IRA). If you changed jobs and still have money sitting in a retirement plan with a prior employer, or if you have recently retired, you are eligible for a rollover.

What is a rollover?

While everyone’s personal circumstances are different, there are some compelling reasons why a rollover into an IRA may be a strong consideration.

  • You have the ability to choose from among many different funding vehicles as a destination for your rollover. With a broad selection of options available, you can better choose products that best fit your needs and preferences.
  • Freedom from the plan restrictions that may apply to your employer-sponsored program.
  • The ability to take a penalty tax-free withdrawal for a first-time home purchase (up to $10,000 which are still subject to taxes) or qualified higher educational expense.
  • An IRA may provide you with better estate planning options

Taking time to consider whether a rollover is right for you can help you build a more sound financial future.

This educational, third-party article is provided as a courtesy by New York Life Insurance Company. To learn more about the information or topics discussed, please contact us.

Neither New York Life, nor its agents, provides tax, legal, or accounting advice. Please consult with your professional advisor for tax, legal or accounting advice.