Why Your 401k Needs a Fresh Start at 59½

If you’re approaching 59½ and still have your retirement savings locked in an employer-sponsored 401k, 4o3b, etc, you could be missing out on key financial opportunities. At Iowa Retirement Benefits & Solutions, we help individuals in Cedar Rapids and beyond take control of their retirement savings by leveraging the 59½ rollover rule.

So what is the 59½ Rollover Rule?

The 59½ rollover rule allows individuals to transfer funds from their 401k to an IRA—even while still employed. This move provides greater investment flexibility, lower fees, and enhanced retirement planning options.

The Risks of Leaving Your Money in a 401k Past 59½

Failing to roll over your 401k into an IRA can result in costly financial consequences, including:

1. Limited Investment Choices – Many employer-sponsored 401k plans offer a narrow selection of funds, restricting your ability to diversify your investments.
2. Higher Fees – 401k plans often come with hidden administrative costs and expense ratios that could be eating into your retirement savings.
3. Lack of Personalized Advice – Unlike an IRA, which allows for professional management and tailored retirement strategies, a 401k limits your access to individualized financial guidance.
4. Tax Consequences & Distribution Challenges – Once you reach the required minimum distribution (RMD) age, not rolling over can lead to unfavorable tax implications and withdrawal complications.
5. Employer Control – As long as your funds remain in a 401k, your employer has control over plan rules, investment changes, and withdrawal policies.

So what are the benefits of rolling your 401k over to an IRA?

A 401k-to-IRA rollover provides several key advantages:

1. More Investment Options – Choose from a wider range of assets, including stocks, bonds, ETFs, and alternative investments.
2. Lower Costs – IRAs often have lower administrative fees compared to employer-sponsored plans.
3. Enhanced Retirement Income Planning – Optimize your withdrawal strategies to minimize taxes and ensure financial security throughout retirement.
4. Estate Planning Benefits – IRAs provide more flexible beneficiary options to help you pass wealth efficiently to your loved ones.

Take Control of Your Retirement Today

Making the right financial moves now can set you up for a stress-free retirement. At Iowa Retirement Benefits & Solutions, we specialize in helping Cedar Rapids residents navigate their 59½ rollover options with confidence.

Email us at info@iowaretirementsolutions.com
Call us at 319-423-3332
Click here to schedule your free consultation.

Let’s build a retirement plan that gives you confidence and security for years to come!

Investment advisory services are offered through Fusion Capital Management, an SEC registered investment advisor. The firm only transacts business in states where it is properly registered or is excluded or exempted from registration requirements. SEC registration is not an endorsement of the firm by the commission and does not mean that the advisor has attained a specific level of skill or ability. All investment strategies have the potential for profit or loss.

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