Roll Over Your Retirement Account

The Perfect Partner on Your Journey to Retirement

From pasta nights to pandemics, new careers to new zip codes – life is full of journeys, each one nothing like the last. As your situation changes, you can take comfort in the partners who stand by you every step of the way. When it comes to planning for retirement, Lake Ridge Bank is that partner. And with the experience, knowledge, and resources necessary to keep your retirement dreams on track through all stages of life, we’re there for the entire journey – your partner for everything the future holds.
 
Did you change jobs? If you have funds in a retirement account sponsored by a former employer, you can seamlessly and easily roll them over to an IRA or other account with Lake Ridge Bank . And if you’re already a bank customer, you’ll enjoy the convenience of being able to see all of your money in a single place, any time. 

Are you ready to have all your accounts in one, convenient location with exceptional service and expert knowledge? Email us at  wealthmgmt@lakeridge.bank or call (608) 826-3570 about rolling over your 401(k) to an IRA or other retirement account with Lake Ridge Bank.

Rollover 401(k) Options

Our retirement-planning professionals are committed to setting their clients up for future success, and they’re ready & available to guide you through all of our available rollover options, including:

  • 401(k)s
  • 403(b)s/Tax Sheltered Annuities (TSAs)
  • SIMPLE (Savings Incentive Match PLan for Employees) IRAs (Individual Retirement Accounts)
  • SEP (Simplified Employee Pension) IRAs

 

Advantages Associated with Rolling Your 401(k)/Retirement Dollars into an IRA

There are a lot of reasons why rolling your retirement money into an IRA makes good financial sense. Here are a few of the biggest.

Investment Flexibility

Most 401(k) plans have a list of 12 to 15 mutual fund options. Your IRA opens the door to an unlimited number of choice of funds, as well as other asset classes like individual stocks and ETPs (exchange-traded products).

Distribution Flexibility

Many 401(k) providers do not allow you the flexibility to take on-demand distributions or set up automatic monthly distributions. You can certainly do both with an IRA.

Management Flexibility

If you want your 401(k) money professionally managed, a lot of providers offer that only through the company that handles the 401(k)’s investments. With a rollover to an IRA, you select the company and individual that you want managing your IRA.

Account Consolidation

Rolling over your 401(k) to a consolidated IRA can better help you manage those dollars, since everything is in a single account. This also makes things easier for your beneficiaries and executor when settling your estate.

Frequently Asked Rollover 401(k) & IRA Questions

Generally, yes, but there are some exceptions, such as turning age 59.5 and becoming disabled. You should talk to our Wealth Management team first. We can help you navigate your plan information to determine your eligibility for a rollover.

A simple phone call (608-826-3570) or email ( wealthmgmt@lakeridge.bank) to Wealth Management is the first step. We will guide you the rest of the way, including facilitating a joint call with your former employer’s retirement plan provider.

You can take a distribution and have the proceeds paid directly to you. Within 60 days, you are able to put that distribution back into an IRA and not be subject to tax. Remember, if you have a distribution payable to you, the retirement plan is required to withhold 20% for federal taxes. You can put the 20% withholding in the IRA within the 60-day window, but you will have to come up with that amount out of your own pocket.

A direct rollover is reportable to the IRS, but not taxable. Your former employer’s retirement provider will issue a 1099-R tax form and send it to you (and the IRS). The distribution code in box 7 of the form will be “G” (direct rollover).

Other types of plans eligible for rollovers include 403(b) plans, 457 deferred compensation plans, and certain pensions.

The short answer is, you’ve got several. You can leave it with your former employer’s plan (as long as minimum balances are met); you can take a full or partial distribution (mandatory 20% federal tax withholding applies); you can roll it to your new employer’s retirement plan (only if the new employer’s plan allows rollovers); or you can roll it over to an IRA, a Roth IRA, or a combination of the two.

We’ll Be There, Always

Our team is here to guide you every step of the way, removing the mystery from the rollover process and keeping you firmly in control of what your post-working years look like. 

Email us at wealthmgmt@lakeridge.bank or call (608) 826-3570 about rolling over your 401(k) to an IRA or other retirement account with Lake Ridge Bank. Or if you’d like to meet in person, we’d be happy to welcome you to our Madison office at 455 S. Junction Road.

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