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401K Rollover

401K’s are a vital part of any successful retirement plan. Put simply; a 401K is a qualified retirement plan, sponsored by an employer that allows you to put aside a percentage of your monthly income on a tax deferred basis.

When you stop working for that company, the 401K is in many cases left dormant and not actively managed, which could disrupt your future retirement plans. If you choose to let your 401(k) remain dormant, you will no longer be able to add to this and naturally your previous employer’s contributions will cease too.

Should I keep my 401(k)?

There are several options that should be considered such as a 401K rollover, this involves moving your existing balance without incurring any tax or penalty payments to your new employees 401(k) plan.

You may also choose to transfer your cash into an Individual Retirement Account (IRA) which can provide wider investment freedom and greater income flexibility during retirement.

Each option has different costs and expenses associated with the choice and there are advantages and disadvantages to moving or rolling over a 401k plan. No guarantees of investment success are offered.

Your 401K Options

Leave It Alone

Due to a lack of understanding, the default choice for many is to leave their 401(k) where it is. Each 401(k) plan is run by the company who sponsors it, as such they decide things such as which investment options are available

Roll It Over

If your new employer offers a 401(k) and you are eligible to participate, it’s simple to roll over your old 401(k).

Draw An Income

If you are over 59½, you can start taking qualified distributions from any 401(k). If you have a traditional 401(k), any income you take will be included in your annual tax allowance.

Roll Over To An IRA

By moving your 401(k) to an Individual Retirement Account (IRA for short) you can access wider investment choice often at a lower cost. An IRA also facilitates greater flexibility for withdrawals meaning you can choose as and when to drawdown throughout your retirement.

Why choose GWM USA?

At GWM USA we know that making a decision on whether to transfer your UK pension can be daunting, which is why our team of experienced UK pension Advisors are on hand to help you answer the questions most British internationals are asking.

All our advisors our US licensed Advisory Representatives, meaning they are well placed to advise in all areas of personal financial planning including UK pensions.

About Us

401K Rollover FAQ’S

How can I trace old 401(K)s?

Your first port of call should be to contact your old employer directly. However, if you don’t hold contact information for them, or they have been subject to a corporate merger this might not be an option. In this case, you will need to search for an old statement for contact details of the plan administrator. Alternatively, you can use the National Registry of Unclaimed Retirement Benefits to conduct a free search for any retirement plan balances held in your name.

Can I lose my 401(k)?

Like any investment vehicle, the value of your 401(k) can go up and down. When the Global Credit Crisis took hold in 2008, many 401(k) plans that were heavily linked to the stock market suffered huge losses. As with any investment plan, the key to minimising the effect of market swings is to ensure your money is spread across a number of asset classes rather than placing all your eggs in on basket.

How many years do I have to contribute to my 401(k)

There is no minimum contribution required with a 401(k). However, to maximise your 401(k) return there are suggested amounts that should be contributed.

How long does a 401(k) rollover take?

Once we have located your 401(k) and have all the required information, typically the process takes between 2 to 3 weeks to complete.

How much does it cost to roll over my savings into an IRA?

As the process is a largely digital transfer with minimal paperwork involved, there is no cost involved. However, there are costs for our management services in the form of an annual fee will be deducted from your account on a quarterly basis and will reduce the overall performance of your account.

There are lots of ways that we can help you. So why not request a call back.

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