IRA and 401(k) Rollovers

Chart a New Course with the Rollover Specialists

Harbor Lights Financial Group, Inc.  specializes in services related to Rollover IRA’s  for investing funds coming out of 401(k)s, 403(b)s and other employer-sponsored retirement plans and IRAs.  We help them understand their options and make well-informed decisions based upon their specific circumstances and future prospects, goals and requirements.

A Rollover IRA is handy financial tool for anyone who is taking a buyout package from a company, changing jobs, or entering retirement years.  By opening a Rollover IRA, you can move assets in an employer-sponsored program, such as a 401(k) plan, directly from one retirement vehicle to another – avoiding current taxes and penalties, while keeping your eligible savings growing tax deferred. (limitations, restrictions and fees may apply)

Benefits of the Rollover IRA:

  • Avoid mandatory withholding – The IRS mandates a 20% withholding for federal income tax purposes of employer distributions unless funds rollover into a Rollover IRA.
  • A wide range of investment* choices – Rollover IRAs can be invested in mutual funds, stocks, bonds, or other securities, including CDs and treasuries.  This makes a Rollover IRA a good opportunity to rebalance your retirement portfolio, because it may allow you to choose investments not traditionally offered by employer plans.
  • Preservation of tax advantages – your eligible assets can continue to grow tax deferred.
  • Flexible access to your assets – If you need to, you can withdraw money from a rollover IRA.  Distributions will generally be subject to current income taxes and a 10% penalty if you are younger than 59 ½ (unless an exception applies).
  • Ability to roll assets into another employer’s plan – In addition, you gain the potential ability to roll eligible assets from a Rollover IRA to another employer’s plan (if the plan allows).
  • Flexible beneficiary designations – A Rollover IRA provides flexible beneficiary designations and stretch-out options for all beneficiaries through an inherited IRA account.

Consult your tax advisor for the latest information on tax implications relating to Rollover IRAs and your specific situation.