Financial Learning Center
- Your Money Stays in the Plan
- Rollover from a Previous Employer
- Investing Your 401(k) Funds
- Selecting a Beneficiary
- Comparing your 401(k) to Other Retirement Plans
- Should You Participate in a 401(k) Plan?
- Does Your Spouse Have a 401(k) Plan?
- Deciding How Much to Contribute to the Plan
- What Can You Afford to Contribute?
- Limits on Contributions
If you had a profit sharing plan, 401(k) plan, thrift plan, employee stock ownership plan, or other type of retirement plan with another employer, your current employer may be willing to accept the money into your current 401(k) plan. You may even be able to roll over money into the 401(k) plan if you have put it in an IRA. Not every 401(k) plan accepts rollovers from other retirement plans, but many 401(k) plans do. Talk to your human resources department or your 401(k) plan administrator if you have money you would like to roll over.
Rolling over your retirement plan benefits from another plan to your current 401(k) plan can have several advantages:
- You can continue to defer taxes on the funds.
- It is easier for you to keep track of your retirement benefits.
- Your investments are in one account instead of several.
- You don't have to worry about forgetting money left with a former employer.
Some employers require you to take your money within a certain time period after you leave if the account balance is less than $5,000. If your former employer insists on giving you the money, you can protect the money from current taxes by transferring it into another employer retirement plan or to a traditional IRA. If your account balance is less than $5,000, the plan may roll over your entire account balance automatically to a designated IRA unless you elect to have the distribution transferred to a different IRA or retirement plan, or to receive it directly.
When you retire, you may be able to take advantage of favorable tax treatment if you decide to take a lump-sum distribution. See the section Distributions from your 401(k) at Retirement for more details.
Investment and insurance products and services are offered through INFINEX INVESTMENTS, INC. Member FINRA (Opens in a new Window)/SIPC (Opens in a new Window). UniVest Financial Services is a trade name of UniBank. Infinex and UniBank are not affiliated. Products and services made available through Infinex are not insured by the FDIC or any other agency of the United States and are not deposits or obligations of, nor guaranteed or insured by, any bank or bank affiliate. These products are subject to investment risk, including the possible loss of value.