July 4, 2016

401K Rollovers

Jon Galane
4 min

When an employee leaves their job, they have to make a decision about what to do with their employer-sponsored 401(k).

One of their options is to roll it over into a self-directed IRA with Mountain West IRA.

Like the 401(k), a self-directed IRA is a tax-deferred account, but it has some additional benefits not available in the traditional 401(k) plan.

With their employer-sponsored plan, employees can only invest in a limited variety of options such as stock funds, bond funds, and money market accounts. With a self-directed IRA from Mountain West IRA, investors have a much broader range of allowable investments.

Multiple retirement plans from former employers can be rolled into a single self-directed IRA account. This can make it easier for investors to keep track of their retirement funds.

There are no additional tax ramifications when rolling a 401 (k) into a self-directed IRA.

Rolling a 401(k) into a self-directed IRA with Mountain West IRA can be a good choice for those who:

  • Are looking for a larger choice of allowable investments for their retirement funds
  • Are no longer utilizing their (previous) employers 401(k)
  • Considering making an Traditional IRA Contribution to potentially lower their current tax bill

When considering rolling the plan over, the employee first needs to contact their former employer’s plan administrator or benefits department to determine if special procedures may be required. Next, the client would use Mountain West IRA’s Rollover Certification Form to deposit the rollover funds from the former employer’s plan.

Contact Mountain West IRA to learn more about the 401(k) rollover process and the available allowable investments.

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