DonReynolds

July is a busy month for ... for multiple reasons. Firstly, although tax season ends on or before April 15 for many investors, it runs through June for others. The Internal Revenue Service allows investors to request an extension until mid-June, and many employees and owners of small businesses take advantage of the extension to put off taxes until the middle of the year. Many doctors, for example, close their respective practices for the entire month of July after working non-stop from January through June and getting their taxes done. It’s during this time that doctors and other small business owners can focus on evaluating their portfolios, and this often leads to the decision to roll over 401k plans. July is also a busy month ... because many teachers and government employees retire at, or close to, the end of June each year. When someone with a 403b retires, they often decide to immediately roll their 403b plan over to a self-directed Individual Retirement Account (IRA). This provides the investor with greater financial flexibility, more retirement account investment options, and lower fees.

When you decide to roll over an old 401k into a new 401k or a self-directed Individual Retirement Account (IRA), you can opt for an: a. [/size]401k rollover, or a b. [/size]401k transfer You can use a 401k rollover or a 401k transfer to move your money away from your former employer, but the method in which the money is moved is the biggest difference between a 401k rollover and a 401k transfer, at least in the eyes of the IRS. A 401k rollover means that your 401k provider liquidates the account and authorizes a check or bank wire in your name. Even if you re-invest the funds before the 60-day IRS limit, you’re still vulnerable to losing up to 30% in taxes and penalties with the swipe of a pen when you accept your old 401k money directly. Instead of rolling over a 401k to yourself, many investors opt for a custodian-to-custodian transfer because the money goes directly from the 401k custodian to the IRA custodian. 401k owners never take direct possession of those funds during the 401k transfer process, which nullifies the need for countless hours of frivolous IRS paperwork. Trustee-to-trustee 401k transfers are not currently subject to tax withholdings, and are exempt from the IRS’ recently-enacted “one rollover per year” rule. Many 401k rollover advisers agree that it’s smarter to transfer a 401k rather than roll over the account, but please speak with a licensed tax attorney before making any decisions about your 401k rollover. For a free “401k rollover vs. 401k transfer” guide, call or visit today.

If you’re faced with the unfortunate decision to roll over a 401k that you inherited from your spouse or someone else who named you as their 401k beneficiary, take comfort in the fact that inherited 401k rollovers are easy to complete. The Internal Revenue Service (IRS) provides 401k heirs with multiple options to move the bequeathed money.

401k rollovers and 401k transfers share some similarities, but the differences between a 401k rollover and a 401k transfer are what savvy investors hone in on to maximize their chances of retirement account success.

If you want to rollover your 401k to IRA then the process is simple, but you need to make sure that you done the process within 2 months to keep away from any penalties and taxes on this transaction. Contact your 401k plan’s admin to done paperwork to roll your 401k over. Start the IRA account at your selected investment firm. The helps you to fill out the paperwork and have to check mailed directly to the account you opened. Deposit proceeds from your 401k to your new IRA within 2 months. [According to 401krollover_com/self-employed-401k-rollovers]