What is a Rollover?

It is an account that allows you to move funds from your old employer-sponsored retirement, 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 remained tax-deferred until you take a withdrawal
  • You may be able to borrow against your employer-sponsored retirement account if plan loans are available
  • Under Federal Law, assets in an employer-sponsored 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 employer-sponsored retirement plan may have lower administrative and/or investment fees
  • If you are still working, required minimum distributions (RMDs) may be delayed beyond age 72
Rolling other assets into your plan

If you have a deferred compensation plan, it can be a good idea to remain in the plan. Should a rollover be necessary, check out the video below.

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from your account(s) may be subject to surrender charges, other fees and/or an additional 10% early withdrawal tax if withdrawn before age 59 1/2.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.