Provident Planning, LLC

CONNECT

Address:

1910 S Stapley Drive, Suite 217
Mesa, AZ 85204

Phone:

(480) 813-2744

Fax/Other:

(480) 820-2744

401 (k) Rollovers & IRAs

When there is a change in employment, your piggy bank becomes accessible.  Your choices will determine how much remains for your future.  Do you know the tax rules and consequences of those decisions?  If not, it could cost you dearly.

You've worked hard for your money.  Much of it may be sitting untaxed in various retirement accounts.  The amount of taxes you actually pay upon distribution is the single most important determinant in how much you will have left over for retirement.  Therefore, any rollover or distribution needs to involve proper tax planning and proper execution of the plan. 

Employer Sponsored Retirement Plans include 401(k), 403(b), 457, profit sharing, defined benefit, Simple and SEP.  Most people who have retirement money have their money in an employer sponsored plan.

IRA's and Roth's are personal retirement accounts individuals can set up and contribute to them, following specific rules.  Inherited IRA's are similar to IRA's but have special rules for set up, for tax deferral and for minimum distributions.

When you leave your employer, one of your options is to roll over your retirement money in the old plan, to your own IRA or Roth according to more rules.  You also may have the options to roll over the money to your new employer sponsored plan or leave the money in the prior employer's plan.

Employer Stock held in your 401(k) account presents special tax issues and opportunities that should be considered before you make the decision to sell the stock and withdraw the funds or roll them over to another retirement account.

Loans from your employer sponsored account can have disastrous consequences should you leave your current employer without repaying your loan.  Not only does it become taxable income, you also may have a 10% penalty.

IRA's/Roth's have their own set of rules when it comes to being taxed and for whether or not the 10% penalty can be avoided.  IRA's/Roth's rules are different from employer sponsored plans.  People often launch their decisions with the misconception that "a rule" applies to both when it probably does not, and are surprised with the huge adverse tax consequences.

Employer sponsored plans are different from each other and each employer may have implemented different features permissible within that plan.  Therefore, it's possible features might vary between employers.

We understand the language of retirement plans and IRS rules.  We help you work with your HR department and your documents to help determine the rules for your particular plan. 

By combining plan rules and IRS regulations with your own personal objectives, we can help you chart a course of action that can meet both your objectives and minimize your taxes to the extent possible.

Asking for our professional advice can help you optimize the amount remaining after taxes.  Our discussions together should answer the following questions: (1) what are your particular choices, (2) what are your objectives, (3) how much to withdraw, (4) when to withdraw, and (5) the account type to roll your retirement money over to, if at all. 

Don't become a victim of a system of complexities.  Make those complexities work for you.  Make an appointment today.  We can help.

 

 

 

Check the background of this financial professional on FINRA's BrokerCheck
Check the background of this financial professional on FINRA's BrokerCheck