If your employer offers a 401(k) that accepts funds from an IRA (Individual Retirement Account), you might be tempted to roll over your IRA to your employee 401(k) plan. However, there are multiple reasons to keep your IRA intact.
Read on to learn about a rollover, reverse rollover, and what option is best for you.
A rollover is the movement of assets between similar retirement plans. When you participate in a rollover, the funds you receive from your original retirement plan must be redeposited in an IRA plan or other retirement plan within 60 days.
You can roll over your IRA into a qualified retirement plan, like a 401(k), as long as the retirement plan allows this type of rollover. Roth IRAs can be rolled over only to another Roth IRA.
An IRA offers many advantages that are not available with a 401(k). You should consult your financial or tax advisor before opening or contributing to an IRA.
Even if you think rolling over your IRA into a 401(k) will benefit you, your employer may not allow it. Those that don’t worry about being held liable if disallowed deposits are made into their 401(k)s.
If you want to maximize your retirement savings opportunities in an IRA, contact the retirement savings experts at Synchrony Bank. Our award-winning rates+ make IRAs from Synchrony Bank an excellent choice for retirement saving.
Synchrony Bank does not provide tax advice so be sure to contact your tax advisor or financial consultant before opening or contributing to an IRA, or taking any action with regard to your 401(k).
+National Average APYs are based on specific product types of top 50 U.S. banks (ranked by total deposits) provided by Informa Research Services, Inc. as of 11/01/2016. CD Rates: Average APYs are based on certificate of deposit accounts of $25,000. Although the information provided by Informa Research Services, Inc. has been obtained from the various institutions, accuracy cannot be guaranteed.
*ANNUAL PERCENTAGE YIELD (APY): All APYs are accurate as of 05/24/2018.
APYs are subject to change at any time without notice. Offers apply to personal accounts only. Fees may reduce earnings. For Money Market and High Yield Savings Accounts, the rate may change after the account is opened. For CDs, a minimum of $2,000 is required to open a CD and must be deposited in a single transaction. A penalty may be imposed for early withdrawals. After maturity, if you choose to roll over your CD, you will earn the base rate of interest in effect at that time. The APY shown for CDs and IRA CDs is for a 60-month CD with a balance of at least $25,000. Click here for all CD rates and terms offered.