You probably only have retirement in mind when you’re deciding if you should to roll over a 401(k) from a previous employer. One other consideration you have to think about is your estate.

401(k) plan beneficiaries usually receive a lump sum, which may have income and inheritance tax consequences for heirs.

While inheriting an IRA has tax implications, your heirs have payout options that can help them mitigate their tax liability.

Ask your financial professional about your situation.  

Before deciding whether to retain assets in an employer sponsored plan or roll over to an IRA an investor should consider various factors including, but not limited to: investment options, fees and expenses, services, withdrawal penalties, protection from creditors and legal judgments, required minimum distributions and possession of employer stock.

Consumers Credit Union does not provide tax advice.  For specific tax advice, please consult a qualified tax professional.

 

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