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Rolling Over Your 401(k), 457(b) or 403(b) into an IRA

It might be easy to forget about retirement plans from past employers, but if you do you might miss out on potential earnings. This is why rolling them over into one IRA might be beneficial to your savings goals.

One of the best ways to save for retirement is to use a tax-advantaged plan offered by your employer, such as a 401(k), 457(b) and 403(b). You can grow your wealth by investing, and more of your money can grow thanks to the tax advantages. The tricky part is always whether you have enough options. Not all employer-sponsored plans are created equal and sometimes the plan options are very limited or the plan fees are high.

When you leave a company, you have the option of rolling over your plan into an IRA, keeping it with your former employer, or rolling it over to your new employer's plan. Our CFS* Financial Advisors believe rolling over your employer plan into an IRA must be considered and here are the reasons why:

  • More Investing Options - One of the main benefits of an IRA is that there are often more investment options. Most employer-sponsored plans have limited fund selections and frequently have a single selection in each category.
  • Diversification - We often see plans offering a limited number of high cost mutual funds to choose from and many participants unwisely invest heavily in their company stock. Instead of relying on these investment options, some of which you might not be comfortable with, you can roll your plan over to an IRA and have nearly the entire universe of options available to you. You might be able to add cash, bonds, and stocks, as well as other asset classes, to your IRA.
  • Personable Service - By rolling over to an IRA, you'll be working directly with our CFS* Financial Advisors, Dennis Adams and Stephen Seewer. Both of our Advisors are committed to SF Fire Credit Union's high level of member service and will work to find investments which are suitable for your objective and risk tolerance. More importantly - they are always close at hand should you need service or have a question.

What about Taxes?

If you roll over an employer plan directly to an IRA, you don't normally need to pay taxes. If you'd like to initiate an “orphan” retirement plan rollover give a call to our Investments Department at 415-674-4845 or 415-674-4846.

* Non-deposit investment products and services are offered through CUSO Financial Services, L.P. ("CFS"), a registered broker-dealer (FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. SF Fire Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members. CFS and its Registered Representatives do not provide tax advice. For such advice, please consult with a qualified tax professional.