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401k rollover is used when you wish to rollover your 401k retirement plan into a new IRA (Individual Retirement Account). It typically occurs when you change employer or retire and wish to rollover into a new IRA instead of deciding to take lump sum amount with possible tax penalties or to keep funds with old employer (if it is allowed). IRA is not an investment it is an account that holds future investments on your behalf such as stocks, bond, mutual funds and money market funds. You have the choice of choosing between traditional IRA and a Roth IRA. A Roth IRA will have an impact on your taxable income, but a traditional one does not. 401(k) is funded with pre-tax dollars, and grow tax-deferred. It means any premature withdrawal prior to age of 59 1/2 by you will land your money with taxes on all you have rolled over and on top of that additional 10% penalty will be charged. 401(k) rollover is a pretty good deal if you are not in urgent need of money. Many people will still land up paying penalty because they dont know how to do a rollover. A good 401(k) rollover planner can be a wonderful guide in helping you to map a good investment strategy. They will be able to provide you advice on maximizing future monetary advantage through 401(k) and by advising on changes that will improve your financial outlook and security.

401K contributions


Decoding Your 401(k) Fees

Most people don't know it, but you actually pay for the privilege of investing in your company's 401(k). Read on to know what you're paying, and what to keep an eye on. By Anna B. Wroblewska.   Whether you know it or not -- and a 2011 AARP study found that 70% of people don't know it -- you pay for the privilege of investing in your company's 401(k). If you're wondering why you've never gotten an invoice, it's because those fees get automatically deducted from the plan's assets. It's... more