Whether you’re preparing to leave your current company or are advising departing employees from your company, familiarizing yourself with 401k rollover basics is a must. Knowing the advantages of moving your retirement savings into another account or leaving funds in a current account can affect your financial future.

Seek information on 401k rollover for beginners to ensure that the process is accessible and completely clear so you’ll understand how the rollover will affect your short- and long-term finances. Obtain details on 401k rollover providers, different types of retirement accounts and the pros and cons of moving your funds to make the right decision. Gather as much information about the financial maneuver as you can by seeking to:

1. Sign up for seminars through brokerage firms or offered by financial advisors to get 401k rollover information for beginners to discover more about estate planning and financial decisions.
2. Study literature and articles or use online calculators provided by investment firms and 401k specialists to choose the best plans and options for your potential 401k rollover.
3. Participate in online seminars or workshops to learn more about 401k rollover possibilities at your convenience.

Action Steps
The best contacts and resources to help you get it done

Attend seminars on 401k rollover for beginners for the best solutions for your retirement account

If you're a 401k holder that needs basic information on accessing funds or on the potential of 401k rollover, seminars provided by respected financial sources can provide reliable and comprehensive advice.

I recommend: Phoenix Financial Group presents seminars on retirement planning and estate planning that discuss IRA and 401k rollover. The company also offers online seminars and literature on various retirement plans. Attend a money management seminar from ING Financial Partners that covers such topics as 401k rollover investments and investment customization.

Find 401k rollover information online to discover news and trends that can affect finances

Clients and potential clients of investment houses and financial planners can access news articles, blogs, financial calculators and portfolio advice online. Use the information to determine the benefits and pitfalls of 401k rollover before you make a move.

I recommend: Read informative news stories and get investment approaches through the website of Ameritrade. Topics include IRA and 401k rollover basics, retirement planning and a 401k rollover calculator to assist with financial choices. Blog entries and news links from Retirement Think discuss retirement plan rollover to help guide your financial choices.

Use webinars and online courses on 401k rollover to determine all of your retirement plan options

Online seminars or videos viewable on your computer can provide basic information on 401k rollover options. Save the information as part of a larger reference library that you can access when making financial decisions, or that you can share with employees.

I recommend: Sign up for an eseminar from Metlife that covers 401k rollover topics like eligible distribution, direct rollovers, withholding taxes and handling accounts with company stocks. Universal Financial Consultants Corporation offers seminars and retirement planning videos on 401k rollover to Roth IRAs.

If you have an employee that is leaving your company, one of the decisions they will have to make, if they have a 401(k), is whether they want to do a 401(k) rollover or not. What the employee will ultimately decide to do with their 401(k) depends on their situation at the time they are leaving their employment.

As an employer, you will need to give them 401(k) rollover information and a 401(k) rollover list to help them find 401(k) rollover providers. An employee only has a few options of what to do with their 401(k) when leaving their job. If an employee does not have another 401(k) readily available at their new job, they may opt to permanently or temporarily leave their money in the account it is already in until they get a new account. When determining what they can do with their money, employees have the following options:

1. Rollover or transfer their money into their new employer's 401(k) plan.

2. Withdraw the 401(k) funds and then rollover the funds directly into an Individual Retirement Account known as an IRA.

3. Cash out the 401(k) account instead of putting it in a rollover and face paying taxes and a 10% penalty.

Action Steps
The best contacts and resources to help you get it done

Put employees in touch with an investment firm that can handle a 401(k) rollover

An investment company can provide assistance to you with the different options for 401(k) accounts and prepare individual investing plans for your employees.

I recommend: Advise the employee to compare different options available for retirement at T. Rowe Price. FINRA offers steps on retirement counseling and withdrawal calculators.

Give your employee information on financial planning for a 401(k) rollover

Financial planning information can help your employee understand not just the options for a 401(k) rollover, but the penalties and taxes from the IRS if they should decide to choose an early withdrawal.

I recommend: The Internal Revenue Service website has a variety of helpful information regarding taxes and plan participant retirement plans. The American Association of Retired Persons, (AARP) provides information and calculators so that an employee can calculate how much they will need for retirement.

Put your employee in touch with a 401(k) rollover provider directly for assistance

Employees need to be able to contact a 401(k) provider directly or have information at their fingertips to find companies that handle 401(k) rollovers. This will make their transition upon leaving easier for both you and the employee.

I recommend: Retirement Advisers offer assistance with setting up retirement plans for individuals. Ameriprise offers individual retirement options and assistance with 401(k) rollovers.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Employees really need to be given enough information in order to make a wise decision regarding what they do with their 401(k) money instead of just simply opting to do nothing with it when they leave. The employee needs to know that in 2005, the automatic IRA rollover law was created for employees that are leaving their employment and have between $1,000 and $5,000 in their 401k. Under this law, if the employee chooses to not do anything at all with their 401(k), the money is automatically rolled over into an IRA. In the event this should happen, the employee has no control over what type of account their money is placed in and can not prepare for retirement in a way that adequately serves their financial needs.

Staying up to date with 401k rollover news and trends can help you advise employees preparing to move their 401k funds to a different individual retirement account or help guide your personal retirement account decisions. News from reliable financial sources can keep you apprised of new tax laws and financial benefits that can affect your rollover plans.

Seek 401k rollover information that covers such topics as tax implications, rollover options and investment choices. Having the most information possible ensure you make the best changes for your financial future. Seek 401k rollover news and trends by trying to:

1. Read finance-related magazines or their online versions for up-to-the-minute developments in 401k rollover information.
2. Study the websites, literature or training seminars of large financial institutions for expert advice on 401k rollover basics and benefits.
3. Discover news and trend reports through websites dedicated to 401k rollover that provide articles and links to a host of information.
   

Action Steps
The best contacts and resources to help you get it done

Find 401k rollover information through financial publications or their websites

Financial magazines provide impartial details, news and legal changes surrounding 401k rollover. Even if you're not a subscriber, most publications have companion websites where you can access vital news stories and opinion pieces online.

I recommend: Search the Forbes website for news stories and trend reports discussing 401k rollover topics like trends, rollover rules, smart stock purchases or risk management. Kiplinger, the website of Kiplinger’s magazine, provides articles featuring practical information and expert opinions on 401k rollover.

Get 401k rollover news and trends through finance company's' literature, websites or workshops

Whether you've chosen a company to handle your 401k rollover or not, financial institutions are a good source of information to help you make sound decisions about your retirement plans. Look for articles, online calculators or obligation-free seminars to get the latest 401k rollover news and trends.

I recommend: Get basic 401k rollover news and advice through TRowe Price. The company’s website features rollover basics, literature, forms and free videos to help guide retirement plan maneuvers. Receive information and rollover guidance through the articles and products offered through Fidelity.

Obtain late-breaking 401k rollover developments through sites that gather helpful articles and data

Websites dedicated to 401k rollover news can give you a quick and comprehensive glimpse at any investment plan changes and trends since they compile and link to articles from a variety of financial sources around the Internet. Follow up and confirm any pertinent information before making major financial decisions.

I recommend: Find information on trends, news, legislative moves, investments, sales and opinions on 401k rollover and plans through the 401k Help Center. Check out Research 401k for 401k rollover news and trends, as well as a glossary and online calculator to assist with retirement plan decisions.

401(k) rollover consultation is a cost-effective way to expand the services you provide to employees that will boost their morale but not stretch your budget. Provide advice on what to do with their 401(k) funds. Make sure the advice comes from professionals and doesn’t require any financial expertise to understand. Rather than putting this advice into glossy pamphlets, design a PowerPoint presentation explaining basic concepts about 401(k) options. You can start by defining the following key terms.

Action Steps
The best contacts and resources to help you get it done

401(k) rollover investments

401(k) rollover investment refers to all the financing options that are available, from the pitfalls that holders should avoid to borrowing from their accounts and making early withdrawals.

I recommend: Generation X Finance explains how to rollover your 401(k).

Consultation

Emphasize to your 401(k) holders that they should seek consultation with a professional retirement planner before making any 401(k) rollover decisions. Consultants can help them complete forms, discuss their retirement goals and walk them step by step through the entire rollover process.

I recommend: Ameritrade explains how a typical consultation process helps account holders make sound decisions.

Traditional IRA

Sometimes called the rollover IRA, the traditional IRA is a fund that depends on money from retirement or pension plans.

I recommend: Retirement Think puts this term into perspective by explaining where the money in a traditional IRA comes from, how it is set up, and the circumstances under which most account holders move the assets into a different plan.

Employer contributions

While the term employer contributions seems self-explanatory, make sure employees understand these contributions are made to entice employees to stay with the company.

I recommend: Universal Financial Consultants Corporation sets the record straight by explaining why a minimum length of service is required before employees are fully vested.

Minimum required distributions

The term minimum required distributions refers to the laws requiring holders to withdraw money once they've reached a certain age.

I recommend: FINRA discusses this term at length, specifying that 401(k) holders who’ve turned 70 ½ should begin to withdraw money from the account. You’ll also learn how the Worker, Retiree and Employer Recovery Act impacts this legal requirement.

20% withholding requirement

The 20% withholding requirement comes into play when the employer pays an eligible rollover distribution from the plan.

I recommend: 401k Help Center explains how this withholding gets taxed.