Traditional Or Roth 401K (Set Up Or Rollover)
An employer-sponsored 401K retirement plan is often the first place people go for long-term investing. There are many reasons for this, and companies often match all or part of an employee’s contribution.
With a traditional 401K, the money is invested before tax and the account holder doesn’t have to pay any tax until the money is withdrawn. It is then taxed at the individual’s current tax rate. With a Roth 401K, the money is contributed after tax, so there are no additional tax consequences when withdrawing.
You can only withdraw money after reaching 59 ½ years old, so it is a true retirement plan, although there are ways to borrow against the funds before that age in certain cases.
JWA and it’s team of financial specialists can set up or handle your company rollover to ensure you have the best plan possible going forward.