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Altra Financial Advisors

Education

The Altra Financial Advisors program is offered through CUNA Brokerage Services, Inc.*, a broker/dealer focused on serving credit union members. CUNA Brokerage Services, Inc. is an affiliate of CUNA Mutual Group. For more information about CUNA Brokerage Services, Inc., please visit cunabrokerage.com.

5 Pros & Cons of 401(K) Rollovers

Have recent events resulted in job loss? In addition to making decisions about new career opportunities and making ends meet, you might also be faced with a decision about what to do with your retirement account from a previous employer.

Should you rollover your 401(k), leave it where it’s at or do something else with the money? Consider these factors first, and talk with a financial professional who can help you address others that may apply to your situation:

Investment Selection

With an employer-sponsored retirement account, there’s typically a similar portfolio offered to everyone. When you choose to rollover that 401(k), you might gain access to a wider range of investment options including stocks, bonds, mutual funds, index funds, annuities and others that allow you to tailor your investments to your personal risk tolerance. A financial professional can help you sort through your options.

Tax Benefits

Access to Account Information and Advice

Gaining access to information about your plan by going through a previous employer may be a challenge down the road, especially if they end up shutting their doors due to an economic downturn. If that happens, you may not be able to get the advice you want. Working with a financial professional might be easier and he/she can give you advice specific to your situation.

Protection

Taxes

Some investors are concerned that they’ll be hit with more taxes if they transfer funds to a new account. If a rollover makes sense for you, you likely don’t need to worry about this since a direct rollover won’t be hit with taxes. Your investments will continue to grow on a tax-deferred basis, and taxes will only be assessed when distributions are made from your account.

Long Term Planning

Early Access to Funds

While accessing funds prior to age 59 ½ can be accomplished for both employer-sponsored funds and IRAs, there are advantages and disadvantages to each. For instance, there may be penalties for early withdrawals.1 A financial professional who understands your particular situation can help you determine whether you’re better off leaving your retirement savings in the employer plan or rolling it over to an IRA, along with any associated implications for early withdrawals.

Estate Planning

Fees, Expenses and Guarantees

The fees associated with employer-provided retirement accounts can vary greatly and you may be able to have lower fees and expenses in a rollover IRA. In addition, there may be investment options available for your rollover that can provide protection against downturns in the financial markets that may or may not be available in your employer provided plan. Ask your financial professional about potential fees, asset protection, minimum balance requirements and other factors.

Contact Altra Financial Advisors

What makes most sense for you — leaving your retirement account in your previous employer’s plan or rolling it over to an IRA? The best way to know is to talk with a financial professional who can help you understand your financial situation, give you personalized advice, and leverage the use of our Rollover Analysis Tool.

Altra Financial Advisors are the financial professionals serving Altra members! Contact us at 888.777.5211 or email [email protected] to schedule a no-cost, no-obligation consultation in person or by phone today.

Check the background of these investment professionals on FINRA's BrokerCheck.
1 Consumer Financial Protection Bureau, Considering an early retirement withdrawal? CARES Act rules and what you should know, June 30, 2020.
CBSI-3196996.1-0820-0922 ©2020 CUNA Mutual Group
FR-3672590.2-0721-0823

Altra Financial Advisors is licensed to serve members in Arizona, California, Colorado, Florida, Iowa, Minnesota, North Carolina​​, South Dakota, Texas, and Wisconsin.​

Trust services provided by Members Trust Company, a federal thrift regulated by the Office of the Comptroller of the Currency. Trust and Investment products are not federally insured, are not obligations of or guaranteed by the credit union or any affiliated entity, involve investment risks, including the possible loss of principal. This is for informational purposes only and is not intended to provide legal or tax advice regarding your situation. For legal or tax advice, please consult your attorney and/or accountant.
*Altra Financial Advisors Financial Professionals are registered representatives of CUNA Brokerage Services, Inc. Representatives are registered, securities sold, advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor, which is not an affiliate of the credit union. CBSI is under contract with the financial institution to make securities available to members. Not NCUA/NCUSIF/FDIC insured, May Lose Value, No Financial Institution Guarantee. Not a deposit of any financial institution. CUNA Brokerage Services, Inc. is a registered broker/dealer in all fifty States of the United States of America.
FR-3585906.1-0521-0623