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IRAs Annuities and 401k Rollovers

If you are planning to change jobs or retire soon, a rollover is an excellent option. Learn more about IRA’s Annuities and 401k rollover options

Everyone deserves a fulfilling retirement after several years of hard work. But like every other phase of life, enjoying retirement requires adequate funding. With pensions becoming less popular by the day, workers must chart out their retirement finances.

And a common hack to ensuring guaranteed, secure lifetime income post-retirement is rolling over your 401k plan into an IRA annuity.

Should you move your
401k plans ?

One great thing about your 401k retirement savings plan is its portability. So whether you are switching jobs or just decide to switch from a 401k plan to an annuity, you have a few options to consider before deciding
  • Are you getting valuable features like greater investment choices or cheaper funds in your rollover account?
  • Can you manage your 401k plan yourself if you roll it over to an IRA?
  • Do you want the convenience that comes with having all your savings in one place?
  • Can you live with losing some of the 401k benefits if you move to an IRA?
If your answer to these questions is YES, you may consider one of the 401k rollover options below and choose the best, depending on your personal preferences.
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Multi-State

IRA’s Annuities and 401k Rollovers

Everyone deserves a fulfilling retirement after several years of hard work. But like every other phase of life, enjoying retirement requires adequate funding. With pensions becoming less popular by the day, workers must chart out their retirement finances. And a common hack to ensuring guaranteed, secure lifetime income post-retirement is rolling over your 401k plan into an IRA annuity

If you are planning to change jobs or retire soon, a rollover is an excellent option. Learn more about IRA’s Annuities and 401k rollover options

Should you move your 401k plans ?

One great thing about your 401k retirement savings plan is its portability. So whether you are switching jobs or just decide to switch from a 401k plan to an annuity, you have a few options to consider before deciding
  • Are you getting valuable features like greater investment choices or cheaper funds in your rollover account?
  • Can you manage your 401k plan yourself if you roll it over to an IRA?
  • Do you want the convenience that comes with having all your savings in one place?
  • Can you live with losing some of the 401k benefits if you move to an IRA?
If your answer to these questions is YES, you may consider one of the 401k rollover options below and choose the best, depending on your personal preferences.

Annuities vs 401k Plans

Annuities and 401k plans are two of the most popular tax-deferred investments workers adopt in saving for retirement and other long-term financial goals. But, although both are tax-deferred investments, they are different. New to these concepts? We have created a simplified approach below.

What are Annuities?

Insurance companies offer annuities as a special contract that combines insurance and investment features. It is a plan that complements other retirement plans. Depending on your preferences, your annuity plan can conveniently sign you up for a lifetime income, tax-deferred growth, yield, flexible withdrawals, and downside protection.

Annuities do not come with an upfront deduction of your taxes for the money contributed. However, you can buy an annuity within an Individual Retirement Account (IRA) or other tax-favored accounts.

What are 401k plans?

Employers usually offer retirement savings and investing plans for their employees – 401k. This plan is established by the subsection 401(k) of the tax code, hence the name.

Employees can get a tax break on contributions with a 401k plan. These contributions are automatically and directly withdrawn from employee paychecks and invested in a preferred investment offering

401k plans come in two basic forms – the traditional 401ks and Roth 401ks. The difference is in how they are taxed – contributions in traditional 401k, contributions are pre-taxed while employees pay the income taxes upfront in Roth.

401k Rollover Options

When governments become more disposed to capitalizing on taxation goldmines, more goldmines for wealth creation will continue to emerge. When business owners explore further options and form a network in the process, they are more likely to be earmarked for income and sales tax reporting, as well as a couple more.

Option 1 - Rollover Into Your New Employer’s 401k plan

This is the first and easiest option. Your savings are kept together, and you may get some expert advice as part of your new 401k plan. There are no new taxes incurred, provided both 401k plans are the same type.

The only downside is that you may be forced to settle for unattractive investment choices with your new plan.

Option 2 - Rollover Into A Traditional IRA

Rolling over into a Traditional Individual Retirement Account (IRA) is the second option. Again, you are still entitled to major tax benefits, and you can choose to invest in whatever you want, whether a highly-rated low-cost index fund or risk-free IRA CD.

But you are not exempted from the required minimum distributions (RMDs) rule, which means you must withdraw your money once you clock 72.

Option 3 - Rollover Into An Annuity

You can also roll your 401k into an annuity held within the tax-friendly confines of an Individual Retirement Account (IRA). Therefore, you can avoid taxes until when they become necessary. Annuities are known for their stable income and guaranteed returns without having to invest your money.

However, buying an annuity can come with high sales commissions, and your funds are locked in for some period after purchase.

Option 4 - Rollover And Convert Into A Roth IRA

With a Roth IRA, you get special tax advantages like zero taxes on gains when you withdraw the money in retirement. In addition, there are no RMDs, and it comes with excellent estate planning advantages.

This option can be costly if you move from a traditional 401k plan to a Roth IRA, but the transition from a Roth 401k to a Roth IRA plan doesn’t create additional taxes.

Trusted Annuities and
401k Rollovers Experts

At Addante Financial Services, Inc. we offer expert advice and recommendations on annuities, 401k Rollovers, and other vital financial matters. We have a team of finance experts with proven knowledge and experience across different spheres of financial services.

Each situation is different, so please reach out to our team at jimaddante@sbcglobal.net or call 847-361-6113 with further inquiries.

Contact Us

401k Rollover Options

When governments become more disposed to capitalizing on taxation goldmines, more goldmines for wealth creation will continue to emerge. When business owners explore further options and form a network in the process, they are more likely to be earmarked for income and sales tax reporting, as well as a couple more.
Option 1 - Rollover Into Your New Employer’s 401k plan

This is the first and easiest option. Your savings are kept together, and you may get some expert advice as part of your new 401k plan. There are no new taxes incurred, provided both 401k plans are the same type. The only downside is that you may be forced to settle for unattractive investment choices with your new plan

Option 2 – Rollover Into A Traditional IRA

Rolling over into a Traditional Individual Retirement Account (IRA) is the second option. Again, you are still entitled to major tax benefits, and you can choose to invest in whatever you want, whether a highly-rated low-cost index fund or risk-free IRA CD. But you are not exempted from the required minimum distributions (RMDs) rule, which means you must withdraw your money once you clock 72. 

Option 3 – Rollover Into An Annuity

You can also roll your 401k into an annuity held within the tax-friendly confines of an Individual Retirement Account (IRA). Therefore, you can avoid taxes until when they become necessary. Annuities are known for their stable income and guaranteed returns without having to invest your money. However, buying an annuity can come with high sales commissions, and your funds are locked in for some period after purchase. 

Option 4 – Rollover And Convert Into A Roth IRA
With a Roth IRA, you get special tax advantages like zero taxes on gains when you withdraw the money in retirement. In addition, there are no RMDs, and it comes with excellent estate planning advantages. This option can be costly if you move from a traditional 401k plan to a Roth IRA, but the transition from a Roth 401k to a Roth IRA plan doesn’t create additional taxes.

Annuities vs 401k Plans

Annuities and 401k plans are two of the most popular tax-deferred investments workers adopt in saving for retirement and other long-term financial goals. But, although both are tax-deferred investments, they are different. New to these concepts? We have created a simplified approach below.
What are annuities?
Insurance companies offer annuities as a special contract that combines insurance and investment features. It is a plan that complements other retirement plans. Depending on your preferences, your annuity plan can conveniently sign you up for a lifetime income, tax-deferred growth, yield, flexible withdrawals, and downside protection. Annuities do not come with an upfront deduction of your taxes for the money contributed. However, you can buy an annuity within an Individual Retirement Account (IRA) or other tax-favored accounts.
What are 401k plans?
Employers usually offer retirement savings and investing plans for their employees – 401k. This plan is established by the subsection 401(k) of the tax code, hence the name. Employees can get a tax break on contributions with a 401k plan. These contributions are automatically and directly withdrawn from employee paychecks and invested in a preferred investment offering 401k plans come in two basic forms – the traditional 401ks and Roth 401ks. The difference is in how they are taxed – contributions in traditional 401k, contributions are pre-taxed while employees pay the income taxes upfront in Roth

Trusted Annuities and 401k Rollovers Experts

At Addante Financial Services, Inc, we offer expert advice and recommendations on annuities, 401k Rollovers, and other vital financial matters. We have a team of finance experts with proven knowledge and experience across different spheres of financial services.

Feel free to call us or send us an email to arrange a consultation.