A rollover of retirement plan assets to an IRA is not your only option. Carefully consider all of your available options which may include but not be limited to keeping your assets in your former employer's plan; rolling over assets to a new employer's plan; or taking a cash distribution (taxes and possible withdrawal penalties may apply). Prior to a decision, be sure to understand the benefits and limitations of your available options and consider factors such as differences in investment related expenses, plan or account fees, available investment options, distribution options, legal and creditor protections, the availability of loan provisions, tax treatment, and other concerns specific to your individual circumstances.
Despite these financial facts, Americans’ optimism regarding their economic future will likely remain high. This is one of the things that makes America great and truly inspiring. While past performance is no prediction of future results, I would much rather live in a country where people believe they can pull through difficult circumstances than in one with a dismal outlook.

In the United States, a 401(k) plan is the tax-qualified, defined-contribution pension account defined in subsection 401(k) of the Internal Revenue Code.[1] Under the plan, retirement savings contributions are provided (and sometimes proportionately matched) by an employer, deducted from the employee's paycheck before taxation (therefore tax-deferred until withdrawn after retirement or as otherwise permitted by applicable law), and limited to a maximum pre-tax annual contribution of $19,500 (as of 2020).[2][3]
TD Ameritrade has retail banking operations in the United States and Canada. The brokerage side of the firm also has a strong online-trading platform for investors who want to trade stocks and bonds. If you want to actively trade in your rollover IRA and or may want to get individual guidance at one of its offices around the country, you should consider working with TD Ameritrade.
If your custodian reported the transaction incorrectly, and you handoff the documentation to your tax professional without explaining the transaction to them, it could get reported on your return incorrectly. To make sure you don't pay tax on an IRA rollover or transfer, carefully explain any IRA rollover or transfer transactions to your tax preparer, or double-check all documentation if you prepare your own return.
Employees who are eligible for a rollover IRA can do one rollover in a 12-month period — no matter how many IRAs or 401(k) accounts they have. According to IRA rollover rules, completing a rollover is a simple process. There are two ways to do a rollover — a direct transfer between custodians or by having your current custodian send you a check and completing the rollover yourself within 60 days.
To complete an IRA rollover, you must not have done another rollover in the past 12 months. You must also be eligible to move money from your current retirement account. This typically means that you must have separated from employment at the company providing your retirement benefits and are no longer eligible to participate in their retirement plan.
You may be able to use a special tax rule to distribute shares of company stock out of the plan once you are retired or no longer working there. It is a distribution option called Net Unrealized Appreciation (NUA). Some 401(k)s may allow you to transfer existing shares directly to an IRA. Many institutions require the funds to go to your IRA as cash instead of as shares. Check with your 401(k) plan financial custodian to see what distribution options are allowed.

Employees who are eligible for a rollover IRA can do one rollover in a 12-month period — no matter how many IRAs or 401(k) accounts they have. According to IRA rollover rules, completing a rollover is a simple process. There are two ways to do a rollover — a direct transfer between custodians or by having your current custodian send you a check and completing the rollover yourself within 60 days.
To help ensure that companies extend their 401(k) plans to low-paid employees, an IRS rule limits the maximum deferral by the company's highly compensated employees (HCEs) based on the average deferral by the company's non-highly compensated employees (NHCEs). If the less compensated employees save more for retirement, then the HCEs are allowed to save more for retirement. This provision is enforced via "non-discrimination testing". Non-discrimination testing takes the deferral rates of HCEs and compares them to NHCEs. In 2008, an HCE was defined as an employee with compensation greater than $100,000 in 2007, or as an employee that owned more than 5% of the business at any time during the year or the preceding year.[32] In addition to the $100,000 limit for determining HCEs, employers can elect to limit the top-paid group of employees to the top 20% of employees ranked by compensation.[32] That is, for plans with the first day of the plan-year in the 2007 calendar year, HCEs are employees who earned more than $100,000 in gross compensation (also known as 'Medicare wages') in the prior year. For example, most testing done in 2009 was for the 2008 plan-year, which compared 2007 plan-year gross compensation to the $100,000 threshold in order to determine who was an HCE and who was an NHCE. The threshold was $125,000 for 2019, and is $130,000 for 2020.[28]
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