Retirement Rollovers

Consolidate and optimize your retirement accounts for better growth and lower costs

What is a Retirement Rollover?

A retirement rollover is the process of moving funds from one retirement account (like a 401(k) from a previous employer) to another account (like an IRA). This is typically done when you change jobs, retire, or want to consolidate multiple retirement accounts.

Rollovers allow you to maintain the tax-deferred status of your retirement savings while gaining access to more investment options, potentially lower fees, and simplified account management.

Many people leave money in old 401(k)s without realizing they could save thousands in fees and gain better investment control through a rollover.

Rollover Fee Savings Calculator

Annual Fee Savings

$1,875

20-Year Savings

$39,750

Fee Difference

0.75%

Potential Savings: By rolling over to a lower-fee IRA, you could save thousands over your retirement years!

Types of Rollovers

Rollover Type Comparison

FactorDirect RolloverIndirect RolloverRoth Conversion
Tax WithholdingNone20% withholdingIncome tax owed
TimelineNo deadline60 daysNo deadline
ComplexitySimpleComplexModerate
Tax EfficiencyMost efficientLeast efficientStrategic
Recommended ForMost peopleShort-term needsTax planning

Benefits of Rolling Over Your 401(k)

Consolidation

Combine multiple old 401(k)s into one account

Impact: Easier management, clearer picture of retirement savings

Lower Fees

Move from high-fee 401(k) to low-cost IRA

Impact: Save 0.5-1% annually in fees ($5,000-$10,000+ over 20 years)

More Investment Options

Access thousands of investment choices vs. limited 401(k) options

Impact: Better portfolio diversification and control

Flexibility

Easier access to funds (with restrictions) and better planning options

Impact: More control over retirement strategy

Simplified Administration

One account to track instead of multiple

Impact: Easier record-keeping and tax reporting

Estate Planning

IRAs offer better beneficiary options than many 401(k)s

Impact: Better wealth transfer to heirs

Rollover Process Timeline

1

Decide to Rollover

Timeframe: Before leaving job or anytime

Action: Evaluate current 401(k) fees and options

2

Choose Rollover Type

Timeframe: Before requesting rollover

Action: Decide between direct, indirect, or Roth conversion

3

Open New Account

Timeframe: Before initiating rollover

Action: Open IRA or new 401(k) account at financial institution

4

Request Rollover

Timeframe: Initiate with old plan

Action: Contact old plan administrator and request rollover

5

Funds Transfer

Timeframe: 1-2 weeks (direct) or in hand (indirect)

Action: Funds move to new account

6

Confirm Receipt

Timeframe: After transfer

Action: Verify funds received and properly invested

Common Rollover Mistakes to Avoid

Using Indirect Rollover

20% withholding tax; must make up difference or face penalties

Missing 60-Day Deadline

Funds treated as distribution; income taxes + 10% penalty if under 59½

Rolling Over to Wrong Account Type

May trigger unexpected taxes or penalties

Forgetting About Old 401(k)s

Continued high fees; lost investment control

Not Coordinating with Tax Advisor

May miss tax optimization opportunities

Cashing Out Instead of Rolling Over

Immediate taxes + 10% penalty; loss of retirement savings

Why Choose Paramic for Retirement Rollovers

Expert Guidance

We handle the entire rollover process from start to finish

Fee Optimization

Help you move to lower-cost investments and accounts

Strategic Planning

Coordinate rollovers with your overall retirement strategy

Ready to Optimize Your Retirement Accounts?

Let our retirement experts help you evaluate your options and execute a rollover strategy that maximizes your savings and growth potential.