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Investor Education

Should you Roll your 401(k) account to an IRA?

An individual leaving an employer typically has four options to consider.

  1. Leave the money in his former employer’s plan, if permitted;
  2. Roll over these assets to your new employer’s plan, if one is available and rollovers are permitted,
  3. Roll over to an IRA; or
  4. Cash out the account

Each choice offers advantages and disadvantage, depending on desired investment options and services, fees and expenses, withdrawal options, tax treatment and investor’s unique financial needs.  We believe that each client should investigate all options, especially if you plan to continue working with another company in the future.

Rolling your money to an IRA is the most tax advantaged way to transfer your 401(k) account and may provide a wide range of investment options, however customers should consider all of their options.  Rolling your 401(k) to an IRA allows an investor to avoid taxes, withdrawal penalties and mandatory tax with holding by their employers. Once you roll your 401(k) to an and IRA, you may no longer be able to roll it back to an employer sponsored plan.

Investors choosing to work with a financial professional may pay a fee or commission for investment choices.

Silver Oak also believes that customer’s should speak to their tax professional before cashing out their 401(k) as you may incur taxes, withdrawal penalties and mandatory tax with holdingsFor more resources please go to:

SEC office of Investor Education and Advocacy at, Rollovers to Individual Retirement Accounts, Regulatory Notice 13-15