When getting a new job or retiring you may want to move your accumulated retirement assets, including your 401ks, to a consolidated account. Consider moving your assets to an IRA with Thrivent Mutual Funds. There are several ways available depending on where the assets currently are held and how the request is completed. Beyond rollovers, you should understand your options, weigh the pros and cons and make a choice that is right for your goals and circumstances.
Direct Rollover: move assets directly into your Thrivent Mutual Funds IRA from your employer plan. You don't take receipt of the funds, so no federal tax withholding is required. And, the one-rollover-per-year rule does not apply.
Indirect Rollover: take receipt of your retirement assets and deposit them into your IRA within 60 days. Keep in mind 20% tax withholding is mandatory for distributions from employer qualified plans. And, you can have only one indirect rollover within a 12 month period, but only for an IRA.
Assets move from one institution to another to the same type of account (e.g., IRA to IRA).
You don't take receipt of the funds, and no federal tax withholding is required.
The one-rollover-per-year rule does not apply.
A retirement account (like a traditional IRA or employer retirement plan) is converted to a Roth IRA.
Some or all assets may be subject to taxes, due for the year of conversion.
Learn the basics about moving your retirement assets, including when it makes sense, and what types of plans qualify.
Not sure which account is right for you? Take a closer look and compare each IRA to help you decide.
It's never too early to start preparing for retirement. Take a look at ways of thinking about retirement and how mutual funds can help.
Over 100 million people in the U.S. are invested in mutual funds.1 Here's everything you need to know to get started.
*IRAs provide increased flexibility on early withdrawals due to additional IRS exceptions to the 10% early withdrawal penalty for IRA distributions. Examples include first time home purchase and qualified higher education expenses. See IRS Publication 590B for more details. However, by rolling over to an IRA, you lose the option for penalty-free distribution from 401(k) plans after the age of 55.