What are rollovers and can they benefit you?

Basically, a rollover is moving money from a previous retirement account into a new one. For example, when you leave your job you could move your money from your work retirement plan into your deferred compensation or other existing account.

Benefits of combining your retirement accounts could include: simplified planning, reduced management fees, and decreased paperwork.

Your retirement plan may offer you the ability to transfer outside assets into your plan. As you weigh your options, there are some key factors to evaluate:

  • Consolidation: Pros and cons of having more than one retirement account versus fewer
  • Fees: Examine the fees assessed in your existing plan, and compare those with the fees in the plan that you are considering rolling assets into. This includes investment fees
  • Performance: Consider plan performance and returns in deciding whether to roll over assets or retain them in an existing plan
  • Investment options: Review all plan investment lineups to understand the choices for each
  • Available services: Consider other services or arrangements offered by the plan, such as access to tools, education, resources, and managed account services, which assigns oversight to a third party

Contact us to discuss your options. We are happy to help.

Rolling other assets into your plan

If you have a deferred compensation plan, it can be a good idea to remain in the plan. Should a rollover be necessary, check out the video below.

Qualified retirement plans, deferred compensation plans and individual retirement accounts are all different, including fees and when you can access funds. Assets rolled over from your account(s) may be subject to surrender charges, other fees and/or an additional 10% early withdrawal tax if withdrawn before age 59 1/2. Nationwide and its representatives do not give legal or tax advice. Please contact your legal or tax advisor for such advice.