What is a Rollover?

It is an account that allows you to move funds from an old employer-sponsored retirement account, and Individual Retirement Account (IRA), to another retirement vehicle. A rollover allows you to preserve the tax-deferred status of your retirement assets, without paying current taxes or early withdrawal penalties at the time of the transfer.

Your retirement plan may offer you the ability to transfer outside assets into your plan. Combining your retirement assets can provide simplicity in managing your retirement income. As you weigh your options, there are some key factors to consider:

  • Any earnings remain tax-deferred until you take a withdrawal
  • You may be able to borrow against your retirement account if plan loans are available
  • Under Federal Law, assets in an eligible retirement plan are protected from claims by creditors
  • You may have access to investment choices, loans, distributions and other services and features not available in an IRA
  • Your new retirement plan may have lower administrative and/or investment fees
  • If you are still working, required minimum distributions (RMDs) may be delayed beyond your RMD age
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To learn more about the benefits of combining your retirement accounts and how we can help, check out this video.

Qualified retirement plans, deferred compensation plans and individual retirement accounts are all different, including fees and when you can access funds. Assets rolled over from your account(s) may be subject to surrender charges, other fees and/or an additional 10% early withdrawal tax if withdrawn before age 59 1/2. Nationwide and its representatives do not give legal or tax advice. Please contact your legal or tax advisor for such advice.