CHANGED JOBS RECENTLY?

Don’t Forget to Roll Over Your 401(k) Savings.

Leaving money behind in a former employer’s 401(k) plan can be a costly mistake. 

When you leave a job, the money in your 401(k) plan can be transferred to another retirement account without incurring any tax liability. If you simply withdraw the money from your 401(k) plan you will incur a penalty. But like everything else, the decision whether or not to transfer the funds in your old 401(k) plan depends on several factors.

This quick guide should help you make the right decisions. Here are you options:

Options 1 Benefits Costs
Leave Money with Your Former Employer’s plan
  • No action necessary
  • Earnings remain tax deferred until you make qualified withdrawals
  • You can’t contribute any more money to that plan
  • Investment choices are limited to what’s available in that plan

 

Options 2 Benefits Costs
Withdraw Your Money and Cash Out
  • You can use the money to pay-up debt or take care of other financial troubles
  • If you are between the ages of 55 and 59 1/2, your withdrawal could be penalty free
  • Taxes and penalties for cash distributions from a retirement account, including a 401(k) plan, can be significant.
  • By spending your retirement savings early, you might not be able to retire comfortably
Options 3 Benefits Costs
Rollover Your Old 401(k) into a New Employer-Sponsored Retirement Plan
  • Assets can be transferred without losing tax-deferred status or incurring any tax penalties
  • You may be able to borrow from your new 401(k) or other employer sponsored retirement plan
  • Investment choices in your new 401(k) plan may be limited
  • Fees and expenses may be higher

 

Options 4 Benefits Costs
Rollover Your old 401(k) into an IRA
  • Fees may be lower
  • Assets can be transferred (rolled over) into an IRA at managed by the investment adviser of your choice.
  • Assets can be transferred without losing tax-deferred status or incurring any tax penalties
  • More investment choices
  • Fees may be higher than your old 401(k) plan in an IRA, depending on the company you choose.
  • You can’t borrow against an IRA

Why You Should Roll Over Your Old 401(k) to an IRA Managed by Abbilon Investments

An Abbilon IRA offers benefits not found in a typical 401(k) plan, including:

  • Better Investment Option: The typical 401(k) offers a selection of 20 or so mutual funds. Chances are you were responsible for selecting which funds and how much to invest. With Abbilon, your money will be invested in a portfolio of individual stocks based on your personal profile and investment horizon. And the investments will be professionally managed with the aid of computer algorithms, which minimize human error.
  • Favorable Cost Structure:With an Abbilon IRA you will only pay 1% of the value of your account annually, and only when your annual performance is positive – no trading commissions or hidden fees. The typical 401(k) administrator charges management fees, administration fees and other kinds of fees, regardless of performance. Over the long run, paying only when you earn money could result in a significantly higher balance.

Rolling over your 401(k) to an IRA account managed by Abbilon Investments is easy and efficient. Here are the steps:

  1. Open an IRA at abbilon.com (or use your existing Abbilon IRA). Remember, for a regular 401(k) you need a traditional IRA, for a Roth 401(k) you need a Roth IRA.
  2. Contact your old 401(k) administrator and ask for a rollover check. They will mail you a check or wire the funds to your bank account.
  3. Once the funds are cleared into your bank account, login to your IRA account at Abbilon.com, go to “Bank Transfers” and deposits the proceeds from your old 401(k) plan into your Abbilon IRA.

Rolling over your 401(k) to your Abbilon IRA is free.

How to Rollover an Existing IRA to Abbilon

In case you’re wondering what Rolling over your 401(k) to an IRA account managed Abbilon Investments is easy and efficient.

  1. Open an IRA at abbilon.com (or use your existing Abbilon IRA). Remember, for a regular 401(k) you need a traditional IRA, for a Roth 401(k) you need a Roth IRA.
  2. Contact your old 401(k) administrator and ask for a rollover check.
  3. Transfer the proceeds from your Bank Account to your Abbilon IRA.

Act Promptly

According to a 2013 Government Accounting Office (GAO) report, when you want to complete a 401(k) rollover, your former employer may put up roadblocks. They might not explain all the possible alternatives, mislead you about account charges, or encourage you to roll your 401(k) over to an IRA within the same institution. Don’t let them pressure you into making the wrong decision.

By law, they have to follow your instructions. So don’t let your hard-earned savings sit idly by with your old employer’s 401(k) service provider. Roll over your 401(k) or IRA to Abbilon now.

DISCLAIMER:

 

Abbilon LLC (“Abbilon” or “Abbilon Investments”) is an investment adviser registered with the Securities and Exchange Commission (“SEC”). Registration does not imply a certain level of skill or training, nor does it imply endorsement by the SEC.  All investments involve risks, including potential loss of principal. Investments are not FDIC insured. Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities. The content on this website is for informational purposes only and does not constitute a complete description of Abbilon’s investment advisory services. Securities held and traded through Third Party Trade LLC (“TPT”) at Apex Clearing Corporation, members of FINRA and SIPC.

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