Rollover Case Study

The Pitti Group Wealth Management |

One of the many pleasures of being a financial advisor is having the opportunity to assist our clients’ family members with their financial needs. We recently had a client mention to us that his son recently got a new job and wasn’t sure what to do with his old employer-sponsored retirement plan. Since our client’s son was out of state, we were able to connect virtually with him and thoroughly reviewed all of his options with him. We informed him that he essentially had 4 options to choose from.

  1. Roll over your assets into an Individual Retirement Account (IRA)
  2. Leave assets in your former QRP, if plan allows
  3. Move assets to your new/existing Qualified Retirement Plan, if plan allows
  4. Take a lump-sum distribution and pay the associated taxes.

Each of these options has advantages and disadvantages and the one that is best depends on your individual circumstances. You should consider features such as investment options, fees and expenses, and services offered. Our team can help educate you regarding your choices so you can decide which one makes the most sense for your specific situation. Before you make a decision, read the information provided in this piece to become more informed and speak with your current retirement plan administrator, and tax professional before taking any action.

Ultimately, he decided it was advantageous to him to rollover the money into an IRA that we established.

If you, a friend, or a family member have recently changed jobs and are considering what to do with an old 401k or 403b plan, please feel free to contact us. We would be happy to offer some guidance!

These case studies are hypothetical and for discussion purposes only. They not intended to represent any specific return, yield or investment. Individual experiences referenced above may not reflect the future experience of any one client. The planning process discussed may not be suitable for your personal situation, even if it is similar to the example presented. Past performance is no guarantee of future results. Investing involves risk including the possible loss of principal.