Creating New Investment Opportunities with a Rollover IRA

Based in Utah, Allegis Wealth Advisors provides independent investment advisors with a range of tools and financial services to help them achieve their clients' financial goals. The Allegis Wealth Advisors team focuses on supplying professional advice and financial products involving investment management, insurance planning, estate planning, and retirement. One of the retirement investment options the firm focuses on is rollover IRAs.

A rollover IRA is an account funded by the transfer of money from a retirement plan with an former employer. Typically, employees can transfer from a 401(k) with a past employer to a rollover IRA without any tax considerations. Once proceeds from a 401(k) are received, individuals have 60 days to complete the transaction. Money in a rollover IRA is subject to the same restrictions as other IRAs. For example, withdrawals will incur taxation and a penalty. 

This option severs ties with past employers while giving individuals greater say over exactly where their retirement money is invested. A rollover IRA literally opens the door to tens of thousands of investments. The other options for a 401(k) with a previous employer include cashing out, which incurs very large penalties, and moving the money into a new employer’s 401(k) plan, which severely limits the investment options.