WrapManager's Wealth Management Blog
When life changes, we can help you thoughtfully respond.

How to Successfully Roll Over Your 401(k)

Posted by Michael J. O'Connor | CWS®, Vice President Investments

August 29, 2018

When a person leaves a job to retire or to join another employer, there are often decisions about what to do with your 401(k). Should you leave it where it is, and just not mess with it? Should you roll it over to your new employer’s plan? Should you roll it into an IRA?

Those three questions, in fact, present three distinct options for an investor to potentially choose from. In this post, we’ll examine each option, detail the pros and cons, and in the process, hope to provide you a road map for how to successfully manage your 401(k).

After all, there’s no reason for an investor to not do something with their 401(k) because it just seems too hard to move without incurring penalties. Our biggest suggestion though is that – unless it’s absolutely necessary – you resist the temptation to cash out. Cashing out of a 401(k) and taking it as a distribution means potentially incurring a sizable tax burden, and if you are under the age of 59 ½ your distribution will also be subject to an early distribution penalty of 10% unless an exemption (such as medical costs) exists.

[+] Read More

401(k) Rollover 401k

Lord Abbett Shares More Tips on Trusts for IRA and 401(k) Holders - Part 2 of 2

June 14, 2018
Here’s the nitty-gritty on naming a trust beneficiary, plus insights on trust mechanics and taxation, and why bequeathing a Roth IRA ... [+] Read More

Don’t Confuse 401(k) Withdrawals with 401(k) Rollovers – It Could Cost You

May 9, 2018
One of the reasons investing gets confusing for most people is that there are too many rules, requirements, products/options, and terms. ... [+] Read More