Chances are that in your working lifetime, you will work at more than one company. You may change jobs, or even become self employed. Your retirement plan will have to follow you wherever you go. A 401k rollover plan will allow you to move your pension from job to job without too much hassle for you.
You do have the option of cashing out your retirement account as you leave one job to go to another. You will be penalized a certain percentage to withdraw the accumulated funds early, and you will have to pay taxes on it. To carry it over makes perfect sense; it stays sheltered and you do not have to start from scratch. Here is some information to guide you through the process.
You will want to find a broker who is well versed in the method initiate this transaction. This will give you the peace of mind you need to know that your pension is safe, and will be handled properly.
If you decide to employ an agent that is associated with a large, well known company you will have added sense of security. That generally means that the organization is established, and not going out of business any time soon. Shop around and check to see which one has the least amount of fees and ones that may even have options for future investing. This will give you the opportunity to be flexible with your funds.
After an agent has been decided on, the process of switching over your retirement account begins. Your new account manager will give you all the necessary paperwork to initiate this course of action; they will know exactly what to do.
Be sure that you are filling the applications out properly, and for the right kind of pension carry over you are looking to initiate. Like most application processes, it can become rather confusing so be careful not to make costly mistakes. The time spent doing this the right way will be worth the money saved for small errors made.
Your spouse, if you have one, is also required to participate in the application process. Since these annuities are considered joint property, both of you must sign the application and make record of your marital status.
Applications must then be brought to an approval board before they become active. Once you have properly completed the paperwork, namely the initial application, you will be asked to complete another set of forms. These will give your new agent an idea of what he or she is working with in relation to your finances, so it is important to take care in finalizing these as well. This will also give your account direction as far as your desires for fund transfers.
As with most transfers, you will have to provide your new broker with statements that prove ownership of the account to be reassigned. The 401k rollover process can be very easy, especially if the agent you have chosen is experienced in this kind of transaction. The only thing left to do will be to reestablishing your regular deductions to the new account.
