Article Outlines Various Options for 401(k) Rollovers and Provides Information about Updated 402(f) Notice Distribution
ROSELAND, NJ , February 19, 2025 /24-7PressRelease/ — In her recently published article on Forbes, Jaime Raskulinecz, CEO of Next Generation Trust Company and a member of the Forbes Finance Council, outlined several ways in which taxpayers can take their 401(k) balance with them when they leave a job.
“Many workers with a 401(k) account don’t realize they can take that account with them when they leave the employer, rather than abandon their retirement savings,” said Raskulinecz. “We find that the rollover issue regarding funds in the account is where people get stuck.”
Depending on the account balance, individuals can cash out or roll the funds over into a workplace retirement plan or a new IRA.
Next Generation Trust Company specializes in full account administration and asset custody for investors with self-directed retirement IRAs and other plans (HSAs, ESAs, and solo (k)s). Savvy investors who wish to include alternative assets within their retirement plan may do so with a self-directed plan—and can roll over the money from a former employer’s 401(k) plan into a new self-directed IRA. The firm also works with plan sponsors who are facing issues related to lost participants.
Rollover options and the 402(f) notice
Raskulinecz reminded investors of the 60-day deadline to roll over the funds into a new retirement account. She also advised to check that the former plan sponsor must make the check payable to the new plan administrator—not the account owner, which would trigger a taxable event—and to consult a trusted advisor before making any changes.
“As always, I strongly recommend that people consult their trusted tax professional or financial advisor before moving their retirement plan funds, so they make informed decisions regarding their unique financial scenario,” said Raskulinecz, whose firm offers client education about self-direction as a retirement strategy via webinars, white papers, and complimentary educational sessions.
The article also mentioned updates to the 402(f), which is a notice of eligible rollover distribution options to individuals who leave a company where they had an employer-sponsored retirement plan. Notice 402(f) is required by the IRS; the updated version provides clearer language about distribution options and rules, including tax treatments, upon leaving an employer. Legislation is in the works to streamline the language regarding retirement plan distribution options and potential tax consequences of cashing out funds; and seeks to expand distribution options into an annuity for people aged 50 and older.
Read the full article on the Forbes Finance Council.
About Next Generation
Founded on the philosophy that every person should have control over their own retirement plans, Next Generation Trust Company educates consumers and professionals about self-directed retirement plans and nontraditional investments, a strategy at one time reserved only for the very wealthy. A custodian of self-directed retirement plans, it is a trust company chartered in South Dakota with its sister firm, Next Generation Services, providing comprehensive account administration and transaction support for all accounts. The neutral third-party professionals at Next Generation expertly guide clients and their trusted advisors as part of their white glove, personalized service for a seamless transaction experience from start to finish. For more information, visit www.NextGenerationTrust.com.
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