Save today for your tomorrow

Gain the control and freedom to invest your retirement funds how and when you want

Save today for your tomorrow

Gain the control and freedom to invest your retirement funds how and when you want


Should you transfer your 401(k) to an IRA? If you have a 401(k) and are approaching retirement or changing jobs, consider a rollover IRA. A rollover is merely a transfer of 401(k) plan assets from your 401(k) to your IRA. If done correctly, it is not a taxable event.

Before deciding whether to leave your money in your former employer’s 401(k) or transfer it to an IRA of your choosing, here are few tips to keep in mind:

Know and understand your 401(k) options

If you left your 401(k) with a former employer, you have options:

  • Roll over the assets to his/her new employer’s plan, if available and permitted A plan participant leaving an employer typically has four options (and may engage in a combination of these options), each choice offering advantages and disadvantages.
    • Leave the money in his/her former employer’s plan, if permitted
    • Roll over the assets to his/her new employer’s plan, if one is available and rollovers are permitted
    • Roll over to an IRA or
    • Cash out the account value.
  • Keep it in an employer plan: If you like your current employer’s plan, leave your money there.
  • Take a lump sum distribution: Your former employer may withhold a percentage; the amount of the distribution will be taxable in the year received and an IRS early distribution tax penalty will apply.

We recommend you discuss each of these alternatives for your 401(k) with one of our Financial Consultants. They can help you identify which option is best based on your retirement goals and current financial situation.

A Redstone Brokerage Services Financial Consultant can explain your options, walk you through the entire process, and assist you with the necessary paperwork.

Ready to Get Started? Contact Us Today.

Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker/dealer (member FINRA/SIPC.) Insurance products are offered through LPL or its licensed affiliates. Redstone Federal Credit Union® (RFCU®) and Redstone Brokerage Services (RBS) are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using the name RBS, and may also be employees of RFCU. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of RFCU or RBS. The RBS site is designed for U.S. residents only. The services offered within this site are offered exclusively through our U.S. registered representatives. LPL Financial Registered Representatives associated with this site may only discuss and/or transact securities business with residents of the following states: AL and TN.

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Securities and insurance offered through LPL or its affiliates are:

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