Strategies to Avoid 401(k) Rollover Mistakes

Individualized advice

You are probably familiar with traditional retirement accounts, and it’s likely you have at least one. These are things like 401(k)s, 403(b)s, and IRAs. Because of this special tax treatment, there are lots of rules for these retirement accounts, addressing things like how much you can contribute and when you can withdraw it. It’s important to understand and follow the rules to avoid potentially expensive mistakes. Because of this special tax treatment, there are lots of rules for these retirement accounts, addressing things like how much you can contribute and when you can withdraw it. It’s important to understand and follow the rules to avoid potentially and costly mistakes.

Spouses, take note

If you are the spouse of someone who plans to roll over their 401(k) balance to an IRA, be aware that would you lose the right to be the sole heir of that money. With the workplace plan, the beneficiary must be you, the spouse, unless you sign a waiver so it can be someone else. Once the money lands in the rollover IRA, the account owner can name any beneficiary they want without their spouse’s consent.

Benny Hevia offers investment advisory services through Gradient Advisors, LLC (Arden Hills, MN 877-885-0508), an SEC Registered Investment Advisor. Gradient Advisors, LLC and its advisors do not render tax, legal or accounting advice. Hevia Wealth Management is not a registered investment advisor and is not an affiliate of Gradient Advisors, LLC. Insurance products and services are offered through Benny Hevia, independent agent. Benny Hevia, Hevia Wealth Management and Gradient Advisors, LLC are not affiliated with or endorsed by the Social Security Administration or any government agencies.

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