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401(k) Rollover

401(k) Planning with NCFG

401(k) Planning with NCFG

At New Century Financial Group (NCFG), we understand the importance of planning for your future. One crucial aspect of financial planning is maximizing your retirement savings, and 401(k) rollovers play a significant role in achieving that goal. Whether you're transitioning jobs, retiring, or simply seeking to optimize your investment strategy, we're here to guide you through the process.

What is a 401(k) Rollover?

A 401(k) rollover is the transfer of funds from a former employer's retirement plan into another qualified retirement account. This maneuver allows you to maintain the tax-advantaged status of your retirement savings while gaining more control over your investment options.

Why Consider a 401(k) Rollover?

  • Consolidation and Simplification: By consolidating multiple retirement accounts into a single account, you can streamline your financial portfolio, making it easier to manage and monitor your investments.
  • Expanded Investment Options: Many employer-sponsored 401(k) plans offer limited investment choices. By rolling over your funds into an IRA, you gain access to a broader range of investment opportunities, including stocks, bonds, mutual funds, and more.
  • Potential Cost Savings: Some employer-sponsored 401(k) plans may have higher administrative fees or limited investment options that could impact your returns over time. By rolling over into an IRA, you may find lower fees and greater flexibility, potentially enhancing your long-term investment returns.
  • Investment Objectives and Risk Tolerance: Your investment goals and risk tolerance should drive your decision-making process. We'll work with you to develop a personalized investment strategy aligned with your financial objectives.

401(k) Factors to Consider

Before initiating a 401(k) rollover, it's essential to consider several factors, including:

  • Tax Implications: It is important to ensure that the rollover is performed correctly in order avoid negative tax implications. 
  • Cost Implication: It's important to understand that rolling over your 401k might come with higher costs. However, we are confident that the value and expertise we bring to your financial planning will help offset any potential cost differences. Our commitment is to ensure that you receive tailored advice and strategies that align with your financial goals, justifying any additional cost.

How Rollovers Affect IRA and Roth IRA Accounts

Rolling over funds from a 401(k) into an IRA or Roth IRA can offer unique benefits:

  • Traditional IRA: Rollovers into a traditional IRA maintain the tax-deferred status of your retirement savings, allowing your investments to grow tax-free until withdrawal.
  • Roth IRA: While rollovers into a Roth IRA may trigger immediate tax liabilities, they offer tax-free growth potential and tax-free withdrawals in retirement, provided certain conditions are met.

401(k) Direct Rollover Option

Sometimes, when your job transition is handled smoothly, there is a “direct rollover" option. With a direct rollover, the funds from your old 401(k) are transferred directly to your new retirement account without passing through your hands. This can help you avoid taxes and penalties that may occur if you were to receive the funds directly and then deposit them into your new account.

Partner with Us for Your 401(k) Rollover

Navigating the complexities of 401(k) rollovers and retirement planning requires expertise and personalized guidance. At New Century Financial Group, we're committed to helping you make informed decisions and optimize your retirement savings strategy. Contact us today to schedule a consultation and take the first step toward securing your financial future.

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