Maximizing your retirement savings has never been easier, but too often people leave valuable 401(k) funds behind when changing jobs. Rolling over a 401(k) from a previous employer into an IRA at The Family Credit Union (TFCU) can help you take full control of your retirement plan while simplifying your finances.
What’s the difference between a 401(k) vs. IRA
401(k) Plans:
- Employer-Sponsored: Typically offered through your workplace, with potential matching contributions from your employer.
- Contribution Limits: Higher annual contribution limits compared to IRAs.
- Tax Benefits: Contributions are made pre-tax, reducing your taxable income. Taxes are paid upon withdrawal during retirement.
IRA Accounts:
- Individually Opened: Not tied to an employer, allowing for more flexibility in choosing where to open an account.
- Contribution Limits: Lower annual contribution limits compared to 401(k)s.
- Tax Benefits: There are different types of IRAs, each with distinct tax benefits.
Why You Should Roll Over Your 401(k)
Leaving a 401(k) behind at a previous employer can mean lost investment opportunities, complicated account management, and limited flexibility. Rolling it over to an IRA at TFCU can help you:
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Gain Greater Flexibility – Access a wider range of investment options and tailor your portfolio to your retirement goals.
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Simplify Management – Consolidate multiple retirement accounts into one IRA to easily track your savings.
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Take Advantage of Potential Tax Benefits – Depending on the type of IRA, you may benefit from tax-deductible contributions, tax-free growth, or other tax strategies to help your retirement dollars go further.
Types of IRAs Available at TFCU
At TFCU, we offer several types of IRAs to suit different financial needs:
- Traditional IRA: Offers potential tax-deductible contributions with taxes paid upon withdrawal during retirement.
- Roth IRA: Provides tax-free withdrawals in retirement, with contributions made using after-tax dollars.
- Coverdale Education Savings Account: Designed to help save for a child’s education with potential tax-free withdrawals for qualified expenses.
Take Action – Don’t Leave Your 401(k) Behind
If you have a 401(k) from a previous employer, rolling it over into an IRA at TFCU ensures your money continues to work for you. Consolidate accounts, expand your investment choices, and simplify retirement planning.
Contact us today to learn how rolling over your 401(k) can strengthen your retirement strategy and make managing your savings easier. Don’t leave your hard-earned retirement savings behind — make them work for your future.
