Old Employer Plan
Did you lose or change your job in the past year? Chances are, your old 401(k) or another retirement plan such as a 403 (b), 457, or TSP is still sitting with your former employer waiting for you to give it direction. You have a few options. Let’s take a look at how you can maximize growth.
- Keep the 401(k) where it is
- Move it to a new 401(k) with your new employee
- Convert it to a mutual fund managed by the same company that has been managing the account all along
- Cash it out
- Remember that a distribution will incur a 10% early distribution penalty to the IRS if you are under the age of 59.5. If your 401(k) is a pre-tax account, you’ll also pay taxes.
A Great Option
The letter your 401(k) administrator provides you leaves out one of the best options! Roll your old 401(k) into a Self Directed IRA. Here’s why this choice is the be choice for many people.
- Not a taxable event. A transfer to a Self Directed IRA is not a taxable event, no matter your age
- The most investment choices allowed. Self Directed IRAs allow almost any investment for your future. Invest in: Real Estate, Hard Money Lending, Agricultural Land, Precious Metals, Cryptocurrency, and many more!
- A diversified portfolio. Simply put, you should never put all your eggs in one basket. A Self Directed IRA allows for this diversification.
- Direct control. With your old 401(k), you took what they offered, but didn’t have any say how to invest the funds. With a Self Directed IRA, you have full control over your investment selections. Invest in what you think is the best opportunity for you and your family.
- Easy Roth conversions. With a Self Directed IRA, a Roth Conversion can be completed with ease. Imagine leaving your heirs assets that are 100% income tax-free. You can with a Roth Self Directed IRA.
Don’t have a Self Directed IRA? Don’t wait! Take back control of your retirement funds before it is too late. Click here to see our process.
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