401(k) Rollover | Investing | Personal | Redstone Federal Credit Union

Should you transfer your 401(k) to an IRA? If you have a 401(k) and are approaching retirement or changing jobs, consider a rollover IRA. A rollover is merely a transfer of 401(k) plan assets from your 401(k) to your IRA. If done correctly, it is not a taxable event.

Before deciding whether to leave your money in your former employer’s 401(k) or transfer it to an IRA of your choosing, here are few tips to keep in mind:

Know and understand your 401(k) options

If you left your 401(k) with a former employer, you have four options:

Roll your assets into an IRA: This may give you a wider range of investment choices. If you have more than one 401(k), you might want to consolidate your multiple 401(k) accounts from more than one previous employer.
Consider annuities: An annuity may provide you with a guaranteed lifetime income. All guarantees are subject to the claims paying ability of the issuing insurance company.
Keep it in an employer plan: If you like your current employer’s plan, leave your money there.
Take a lump sum distribution: Your former employer may withhold a percentage, the amount of the distribution will be taxable in the year received and an IRS early distribution tax penalty will apply.

We recommend you discuss each of these alternatives for your 401(k) with one of our Financial Consultants. They can help you identify which option is best based on your retirement goals and current financial situation.

Securities and advisory services offered through LPL Financial, a registered investment advisor member FINRA/SIPC. Insurance products offered through LPL Financial or its licensed affiliates. The investment products sold through LPL Financial are not insured Redstone Federal Credit Union® deposits and are not NCUA insured. These products are not obligations of Redstone Federal Credit Union and are not endorsed, recommended, or guaranteed by Redstone Federal Credit Union or any government agency. The value of the investment may fluctuate, the return of the investment is not guaranteed, and loss of principal is possible.

The services offered within this investment site are available exclusively through our U.S. registered representatives and are available for U.S. residents only. LPL Financial Registered Representatives associated with residents of Alabama and Tennessee. Please note that not all of the investments and services mentioned are available in every state.

RFCU and Redstone Brokerage Services are not registered broker/dealers. LPL Financial is a separate entity from and not affiliated with RFCU or Redstone Brokerage Services. RFCU does not warrant, guarantee, or insure any product or service offered by LPL or Redstone Brokerage Services. Redstone Brokerage Services and RFCU do not provide tax advice. Please consult your tax advisor for your specific questions.

Must be RFCU member to obtain investment products. Must be eligible for membership and open a share savings account in order to join. A $5.00 minimum balance is required to open and mus be maintained in share savings account at all times. Fees and other restrictions may apply. RFCU and Redstone Brokerage Services are affiliated but separate entities.