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Everything You Need To Know About In-Service Rollovers

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What is an in-service rollover?

An in-service rollover allows you to move all or part of your company-sponsored 401K plan into an IRA once your reach the age of 59 ½.

Who is eligible?

Employees that are 59 ½ and that have a 401K with a company that allows in-service rollovers.

How do I know if my firm allows in-service rollovers?

You can reach out to your firm's benefits department and ask them, or you can reach out to our team of professionals that focus on in-service rollovers. We can be reached at

How can I process an in-service rollover?

The first step would be to find out if your company allows in-service rollovers. If they do, you can set up an IRA account with any firm and wealth advisor that you wish. At that point, you call your firm's benefits department and request a check for an in-service rollover. They then issue a check that will be mailed to your mailing address, and you must deposit that check into the IRA account within 60-days to avoid any tax penalties.

What are the advantages of in-service rollovers?

1. Transparency

401K plans tend to have high charges through expensive mutual funds. These charges are not transparent, and are charged to the investor through an expense ratio, that is not clearly visible to the client. The client never sees this charge, but the expense gets cut out of the fund's overall performance.

The problem with lack of transparency in 401K's has become so big that the department of labor has recently come out with a set of fiduciary rules for 401K plan providers in order to make them more transparent. The rules do not seem like they will be put into place for another two years. With an IRA, the investors can have a clear picture of their investments with complete access to their fee structure.

2. Control

In an IRA, you can choose any investments that you like, whether it is stocks, ETF's, individual bonds, or alternative investments. In a 401K, there are limits by your plan provider and employer.

3. Customer service

If you have ever tried calling your benefits department to ask a question about your 401K, you have likely spoken with an HR employee that does not know anything about your investment options. Furthermore, you were most likely placed on hold for quite a bit of time. Rolling over into an IRA allows you to work with a wealth advisor that can give you personal customer service. There are no 1-800 number and no long hold times.

4. Professional management

Using a professional wealth advisor allows you to work with someone to create a financial plan, establish clear goals, and plan a path to achieving these goals. The best option is to use a wealth advisor that does a complete financial plan, so that your IRA will fit into the rest of your investments, and help you achieve your financial goals.


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