When you leave your employer, you also discontinue contributing to your 401(k) or receiving your employer’s match. You may be going on to another employer or possibly retiring. Either way, you may want to consider a fixed-indexed annuity when rolling over your 401(k) to avoid the following:
Many people decide to roll over their 401(k) to an IRA, but there are many reasons you should consider rolling it over to a Fixed-Indexed annuity instead. Fixed-Indexed annuities are becoming more widely used in financial services and are contracts with an insurance company. Some features of fixed-indexed annuities include:
If you decide to roll over your 401(k), take note of these tips. They can help ensure a smooth transition of your retirement account’s assets:
Lastly, determine if you would like to consider a fixed-indexed annuity is a suitable option for you. An annuity provides a fixed benefit for a specified period. It can be a retirement income strategy based on your portfolio’s other investments.
If you have questions regarding annuities please contact our office. We can show you how they can be a part of your retirement income strategy.
Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. This is not a comprehensive review of all the features and benefits. All the material details of annuities should be reviewed prior to making a purchase decision. Although an external index or indexes may affect contract values, the contract does not directly participate in any stock or equity investments. An annuity is intended to be a long-term, tax-deferred retirement vehicle. Earnings are taxable as ordinary income when distributed, and if withdrawn before age 59 ½, may be subject to a 10% federal tax penalty. If the annuity will fund and IRA or other tax qualified plan, the tax deferral feature offers no additional value. Qualified distributions from a Roth IRA are generally excluded from gross income, but taxes and penalties may apply to non-qualified distributions. Consult a tax advisor for specific information.
In conclusion at Waterhouse Financial, we truly enjoy helping people make smart financial decisions. In addition, we look forward to learning more about you, your priorities, and your goals. Contact us today to discuss your retirement strategy.