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Put your old 401(k) in the right place

If you have an old 401(k), 457 or 403(b), it’s time to consider your options – including rolling over to a Prudential IRA.

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Explore your options

Could be good if:

  • You’re interested in a variety of investment options
  • You’d like to make annual contributions
  • You’re looking for continued tax-deferred growth potential

Keep in mind:

  • You may pay annual fees for your IRA
  • You’ll need to be at least 59½ to withdraw your money penalty-free
  • At age 72, minimum distributions are required from rollover and traditional IRAs

Could be good if:

  • You’re happy with your current retirement account
  • Your plan offers better pricing
  • You want your retirement savings to continue growing tax-deferred
  • You left your former employer after age 55 and would like to make tax penalty-free withdrawals

Keep in mind:

  • You can’t contribute to a former employer’s plan
  • You won’t be able to borrow from your former plan’s assets
  • Your investment options may feel limiting
  • Minimum distributions are required at age 72

Could be good if:

  • The new plan offers lower-cost investments
  • The new plan may allow you to take a loan from your rollover assets
  • You’re looking for continued tax-deferred growth potential
  • The new plan allows tax penalty-free withdrawals for anyone over the age of 55

Keep in mind:

  • Your investment options may feel limiting
  • Your new employer’s plan may have higher costs
  • There could be a waiting period to consolidate accounts
  • Your plan may not allow loans or loans from rollover assets

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You also have the option to take the cash value of your account.*

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Thinking of a rollover? Prudential keeps it simple.

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Meet a local financial professional

Connect in person or on the phone to discuss a range of financial options. We have over 3,000 Financial Professionals and Advisors nationwide.

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Get a 401(k) rollover “concierge”

Rollovers don’t have to be a time-consuming process. A no-charge service from our friends at Capitalize will help manage it for you.

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Already have a Prudential 401(k) or other Retirement Plan with us?

Click here to login or enroll in your retirement plan. Or call 877-778-2100

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FAQs

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  • A rollover IRA is an individual retirement account often used by those who have changed jobs or retired. A rollover IRA allows individuals to move their employer-sponsored retirement accounts without incurring tax penalties and remain invested tax-deferred. Consolidating multiple employer-sponsored retirement accounts can make it easier to monitor your retirement savings.

  • You must have experienced a “triggering event” to roll over. Common events include changing jobs, retiring, death, or disability. Please contact your plan administrator to determine whether you are eligible.

  • In three simple steps:

    • 1. Open a Prudential IRA.
    • 2. Contact the record keeper of your old employer-sponsored retirement plan to request a rollover.
    • 3. Choose your investments.

     

    *Note: If you have an existing rollover or traditional IRA at Prudential, you can roll your assets into that account.

  • Yes, but be aware that some employer plans do not allow assets from a traditional IRA to be rolled back into an employer-sponsored retirement plan.

  • Generally, pretax assets are rolled into a rollover IRA or traditional IRA. After-tax assets (Roth 401(k) or after-tax savings) are rolled into a Roth IRA.

    You can choose to roll pretax savings into a Roth IRA, but doing so would be treated as a taxable event. Similarly, you can roll after-tax savings into a traditional IRA, but this requires careful tracking of your assets for when you start taking distributions. Before deciding, please consult your tax advisor about your personal circumstances.

  • Generally, there are no tax implications if you move your savings directly from your employer-sponsored plan into an IRA of the same tax type (e.g., pretax to a traditional rollover IRA or Roth 401(k) to a Roth IRA).

    If you choose to convert some or all of your pretax retirement plan savings directly to a Roth IRA, the conversion would be subject to ordinary income tax.

  • Maybe. The ability to do partial distribution varies by employer. Check your plan's rules for more information.

  • The distribution will be subject to mandatory tax withholding of 20%, even if you intend to roll it over later. This withholding can be credited to your income tax liability when you file your federal tax return if you roll over the full amount of any eligible distribution you receive (the actual amount received plus the 20% that was withheld) within 60 days.

    If you are not able to make up for the 20% withheld, the IRS will consider the 20% a taxable distribution — it will be subject to regular income tax and, if you are under age 59½, an additional 10% early-withdrawal penalty.

  • Yes, if you have after-tax (e.g., Roth 401(k)) savings, you can roll it directly into a Roth IRA without incurring any tax penalties. If you have pretax savings, converting those savings to a Roth IRA will be treated as a taxable event.

  • You can choose to roll company stock into an IRA or a taxable brokerage account. If you decide to roll the stock to an IRA, its full value will be taxed as income at your regular rate; if you move the stock to a taxable brokerage account, you might be able to save money by paying capital gains taxes (which may be at a lower rate than your income tax rate) on the difference between the stock‘s value and the price you paid for it. There are tax benefits to each, so consult your tax advisor and ask about the “net unrealized appreciation” (NUA) strategy.

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What sets Prudential apart:

145 years of service

$1.4 trillion in assets**

50 million worldwide customers

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Footnotes

* Cashing out can be a costly option. In addition to losing the tax deferred status of your assets, your employer will withhold 20% of your account balance at the time of distribution. The IRS may consider your payout an early distribution, which means you could owe the 10% early withdrawal penalty on top of combined federal, state and local taxes.

 

**as of 3/31/19

Before deciding on which option is the right solution, investors should consider each option and the impact on investment options, fees and expenses, services, protection from creditors and legal judgments, withdrawal rules and potential penalties, and required minimum distributions. For investors with employer stock, there are additional considerations to be aware of, such as the Net Unrealized Appreciation strategy. The FINRA Investor Alert Opens in new window provides more information on what to consider before moving assets.

 

For Compliance Use Only 1030781-00003-00

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