How to Roll Over Empower 401k

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To transfer your Empower 401(k) funds to a new retirement account, follow these simple steps:

1. Contact Empower and ask for rollover instructions. They will provide you with necessary forms and documents.

2. Choose the new retirement account you want to transfer your funds to, such as an IRA or a 401(k) plan with your new employer.

3. Complete the rollover form and submit it to Empower, along with any required documentation. You can typically do this online or by mail.

4. Review your new account statement to ensure that the transfer was completed successfully.

Rollover Eligible Assets

Not all assets in your Empower 401(k) are eligible for a rollover. The following assets can be rolled over to an IRA, another 401(k) plan, or a different retirement account:

  • 401(k) plan balance
  • Roth 401(k) balance
  • Traditional IRA balance
  • Roth IRA balance
  • SIMPLE IRA balance
  • SEP IRA balance

Steps to Roll Over Empower 401(k)

  1. Choose a new retirement account. You can roll over your Empower 401(k) to an IRA, another 401(k) plan, or a different retirement account.
  2. Complete a rollover form. Empower will provide you with a rollover form that you need to complete and return to them.
  3. Wait for the transfer to be complete. The transfer process can take several weeks to complete. Once the transfer is complete, the assets will be deposited into your new retirement account.

Important Considerations

There are a few important considerations to keep in mind when rolling over your Empower 401(k):

  • Tax implications. Rolling over your Empower 401(k) to a traditional IRA or another 401(k) plan will not result in any current tax liability. However, rolling over your Empower 401(k) to a Roth IRA may result in current tax liability.
  • Investment options. The investment options available to you will vary depending on the type of retirement account you choose to roll over your Empower 401(k) to.
  • Fees. There may be fees associated with rolling over your Empower 401(k). Be sure to compare the fees charged by different retirement accounts before you make a decision.

Contact Empower

If you have any questions about rolling over your Empower 401(k), please contact Empower at 1-800-222-4010.

Types of Rollover Options

There are two main types of rollover options for an Empower 401k:

  • Direct Rollover: Transferring funds directly from the Empower 401k to another qualified retirement account, such as an IRA or another 401k plan. This method ensures that taxes are not withheld from the transferred funds.
  • Indirect Rollover: Taking a distribution from the Empower 401k and depositing it into a non-qualified account, such as a personal checking account. The funds can then be rolled over to a qualified retirement account within 60 days. However, taxes will be withheld from the distribution if it is not rolled over within this timeframe.

Choosing the appropriate rollover option depends on the individual’s financial situation and tax implications. Direct rollovers are generally preferable as they preserve tax-deferred status and avoid any potential tax penalties. Consulting with a financial advisor or tax professional is recommended for personalized advice.

Rolling Over Your Empower 401k

Rolling over your Empower 401k to another account can provide you with greater control over your retirement savings and investment options. Here’s a comprehensive guide to help you understand the process and navigate the tax implications:

Timing Your Rollover

  • You must complete the rollover within 60 days of receiving the 401k distribution.
  • If you miss the deadline, the distribution will be taxed as ordinary income and subject to a 10% early withdrawal penalty (if you’re under age 59½).

    Tax Considerations for Rollovers

    The tax treatment of a 401k rollover depends on the type of account you roll it into:

    Destination Account Tax Treatment
    Traditional IRA Rollover is tax-free, but withdrawals in retirement are taxed as ordinary income.
    Roth IRA Rollover is taxed as ordinary income now, but withdrawals in retirement are tax-free.
    Another 401k Rollover is tax-free, and the funds continue to grow tax-deferred.

    Steps to Roll Over Your Empower 401k

    1. Contact Empower: Request a rollover distribution form.
    2. Choose a Destination Account: Decide where you want to roll over the funds.
    3. Complete the Rollover Form: Indicate the destination account and the amount you wish to roll over.
    4. Submit the Form: Send the completed form to Empower.
    5. Transfer the Funds: Empower will initiate a direct transfer of the funds to your destination account.

      6. Additional Tips

      • Consider the investment options and fees of your new account.
      • Consult a financial advisor if you have questions about the tax implications or investment choices.
      • Keep records of your rollover transaction for tax purposes.

        In-Service vs. Separation Rollovers

        There are two main types of 401(k) rollovers: in-service rollovers and separation rollovers.

        • In-service rollovers can be made while you are still employed by the company that sponsors your 401(k) plan. To be eligible for an in-service rollover, you must have reached age 59 1/2, or you must be leaving your job and have worked for the company for at least 10 years.
        • Separation rollovers can be made after you have left your job with the company that sponsors your 401(k) plan. You are eligible for a separation rollover if you have terminated your employment with the company and you have not reached age 59 1/2.

        There are some important differences between in-service rollovers and separation rollovers. In-service rollovers are not subject to the 10% early withdrawal penalty, but separation rollovers are. In-service rollovers can also be made more than once, but separation rollovers can only be made once.

        In-Service Rollovers Separation Rollovers
        Can be made while still employed Can be made after leaving employment
        Must be age 59 1/2 or have worked for the company for at least 10 years Must have terminated employment and not reached age 59 1/2
        Not subject to the 10% early withdrawal penalty Subject to the 10% early withdrawal penalty
        Can be made more than once Can only be made once

        And there you have it, folks! Rolling over your Empower 401k is a breeze with these simple steps. Remember, the sooner you make the move, the sooner your money can start working harder for you. Thanks for reading, and be sure to check back for more financial tips and tricks. Until next time, keep on growing that nest egg!

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