Rollovers
Capital Ingenuity can teach you everything you need to know about doing a rollover.

If an employee of a particular company establishes a 401(k) account while working at that company and the employee leaves that company, that employee can "rollover" the assets of that account into a new account.

Generally, there are two ways a rollover can occur with a 401(k) account. The account owner can either rollover the assets into a new 401(k) account that may be offered by a new employer or they can rollover the assets into an Individual Retirement Account (IRA).

Rolling over an old 401(k) account into an IRA may be advantageous. One key disadvantage to 401(k) accounts is that the employee can only invest in the mutual funds that are offered in the 401(k) and sometimes in the stock of their employer if the stock is publicly traded. But with certain IRAs, an investor can invest in a large variety of stocks, bonds, mutual funds, and other investments that may not be available to specific 401(k) accounts. By rolling over the 401(k) account into an IRA, an investor can have access to a greater selection of investments.

Not all IRAs offer more investment alternatives, however. In fact, you may be asked by a representative of another financial service provider, such as a bank teller or your insurance sales representative, if you have any old 401(k) accounts. While they may try to sell you on rolling over the 401(k) into one of their IRAs, they may not inform you that there are other IRAs offered by different companies that may give you a greater selection of investments, have lower account fees, and possibly have additional benefits. They may leave this important information out because they want your commission.

At Capital Ingenuity, our Educators/Coaches are not compensated with any commissions, so the only focus is to provide you with an unbiased education in the different options available.