Helping you understand your options when moving a 401(k), 403(b), 457(b), TSP, or IRA.
If you are leaving an employer, retiring, or reviewing your retirement strategy, understanding your rollover options can help you make more informed decisions.
Loretta helps individuals and families review their choices and explore strategies designed to support dependable retirement income and long-term financial security.
Loretta helps clients review rollover options across all major retirement account types. Each plan has different rules and considerations — understanding your options is the first step toward a confident decision.
One of the most common employer-sponsored retirement plans. When leaving a job or retiring, a 401(k) can often be rolled over into an IRA or a new employer's plan — typically without triggering taxes if done as a direct rollover.
Similar to a 401(k), the 403(b) is offered by schools, nonprofits, and certain tax-exempt organizations. Rollover rules closely mirror those for 401(k) plans, and moving funds to an IRA may open up additional income strategy options.
Offered by state and local government employers, 457(b) plans have unique distribution rules — including no 10% early withdrawal penalty in some cases. Rollover options and eligibility can vary, so reviewing your specific plan details matters.
The TSP is the retirement plan for federal government and military employees. It offers low-cost investment options and specific distribution features that may change after a rollover. Understanding what you may gain — and give up — is important before moving TSP funds.
An existing Traditional IRA can be rolled over or transferred into another IRA or used to consolidate multiple retirement accounts. IRAs also commonly serve as the receiving account for rollovers from employer plans.
Not certain which type of account you have or what your rollover options are? Loretta can help you review your specific plan and understand your choices — at no cost and with no obligation.
Rollover decisions involve important tax, income, and planning considerations. These are some of the questions Loretta hears most often.
When you leave an employer, you typically have several options: leave the account with your former employer (if allowed), roll it into a new employer’s plan, roll it into an IRA, or take a cash distribution. A cash distribution may trigger taxes and early withdrawal penalties, so understanding your options before making a decision is important. A rollover review can help you evaluate which path makes the most sense for your situation.
Leaving money in a former employer’s plan is sometimes an option, but it may come with limitations on investment choices, higher fees, or restrictions on future transactions. For many people, rolling over to an IRA offers more flexibility and control. The right decision depends on your specific plan, goals, and retirement timeline.
Yes. Rolling a 401(k) into a traditional IRA is one of the most common rollover transactions. If done as a direct rollover, funds move directly from one account to another without triggering taxes or penalties. This can simplify your retirement accounts and may open up additional income strategies as part of your broader retirement plan.
A properly executed direct rollover — where funds move directly from one retirement account to another — typically does not trigger taxes or penalties. However, an indirect rollover, where funds are first distributed to you and then deposited into a new account within 60 days, may result in mandatory withholding. Missing the 60-day window can result in the distribution being treated as taxable income. Understanding the rollover process before initiating a transfer is important.
A direct rollover means funds transfer directly from your retirement account to a new account — you never receive the money personally. An indirect rollover means the funds are distributed to you first, and you must deposit them into a new qualified account within 60 days. Your plan is typically required to withhold 20% for federal taxes on indirect rollovers, which you would need to make up out of pocket and reclaim when filing your taxes. Direct rollovers are generally simpler and carry less risk of error.
TSP and 457(b) plans have unique rules, distribution options, and rollover considerations that differ from standard 401(k) plans. TSP accounts, used by federal employees, offer specific low-cost investment options and withdrawal features that may or may not be available after a rollover. 457(b) plans, common for state and local government employees, can also have different distribution rules. Reviewing your specific plan details and understanding your options before moving funds can help you avoid unintended consequences and make a more informed decision.
Yes — ideally before initiating any rollover. Once funds are moved, certain options may no longer be available or may require additional steps. A consultation can help you understand how your rollover decision connects to your broader retirement income planning strategy, including options designed to create more predictable income throughout retirement.
Loretta helps individuals and families review retirement account rollover options with a focus on clarity, education, and long-term planning. During a consultation, she can help you understand the choices available, review how different rollover strategies may affect your retirement income, and explore options designed to support your goals.
As an independent advisor, Loretta is not tied to any one company or product. She works with a range of carriers to help clients find strategies that align with their individual situation. Learn more about Loretta and her approach to retirement planning.
Whether you have a 401(k) from a previous employer, a TSP account approaching retirement, or multiple old accounts you want to consolidate, Loretta can help you understand your options and make a more informed decision at your own pace.
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