Understanding your options when leaving employer retirement plans.

You’ve changed jobs, retired, or your company switched 401(k) providers—and now you’re considering what to do with the retirement money you’ve worked to accumulate. Many people don’t fully understand their options: keeping money in an old employer’s 401(k) plan may mean accepting limited investment choices, higher fees, and missed opportunities for tax planning coordination.

A strategic 401(k) rollover may unlock additional investment options, potentially reduce your annual costs, and integrate your retirement savings with a comprehensive financial plan designed around your goals.

At Saltiel Wealth Management in Sarasota, Florida, we work with high-income professionals, business owners, retirees, and high-net-worth families to help them understand their retirement savings options through strategic rollovers and comprehensive investment management. As fiduciary* advisors, we’re committed to work in your best interest—ensuring your rollover serves your financial goals.

Our boutique practice operates from a home-based office, helping us manage overhead so we can focus on providing personalized guidance that may help you work toward optimizing your retirement wealth through investment choices, cost considerations, and integrated financial planning.

Ready to explore how a 401(k) rollover might enhance your retirement strategy? Let’s review your options.

Understanding the potential benefits of rollover options.

1. Expand Your Investment Options

From limited employer plan options to broader investment access.

Most employer 401(k) plans offer 10-25 investment options, often including actively managed funds with various costs and performance levels. When you roll over to an IRA with Charles Schwab, you may gain access to:

Broader Mutual Fund and ETF Selection:

• Low-cost index funds from various fund families

• Specialized sector and international funds

• Factor-based investing strategies (value, growth, small-cap, emerging markets)

• Bond funds across different maturities and credit qualities

Individual Securities:

• Direct ownership of dividend-paying stocks

• Treasury Inflation-Protected Securities (TIPS)

• Corporate bonds and CDs

Alternative Investments** for Qualified Investors:

• Real Estate Investment Trusts (REITs)

• Commodity funds and precious metals

Important: Alternative investments involve substantial risk and may not be suitable for all investors. See disclosures below for additional information.

2. Address Investment Costs

Understanding fee structures and their potential impact over time.

Many 401(k) plans have various fee structures. Between fund expense ratios, administrative fees, and management charges, you might be paying fees annually that compound over time.

Typical 401(k) Plan Costs May Include:

• Fund expense ratios: 0.5% – 2.0%

• Administrative fees: 0.25% – 1.0%

• Record-keeping fees: $25-100+ annually

• Investment advisory fees: 0.25% – 0.75%

Note: Some employer-sponsored plans may have lower overall costs than IRA options, depending on investment selection and institutional pricing. Cost alone should not determine rollover suitability.

IRA Rollover Cost Considerations:

• Low-cost index funds available: 0.03% – 0.20%

• Reduced administrative fees at many custodians

• Advisory fees: 0.60% – 1.00% (for comprehensive management)

• Institutional share classes when available

Important: This is a hypothetical example for illustrative purposes only, results not guaranteed. Individual results will vary based on specific plan costs, investment selection, and market performance. Fee reduction alone does not guarantee better investment returns.

3. Create a Customized Investment Strategy

Portfolios designed around your goals, timeline, and risk tolerance.

Employer 401(k) plans typically offer target-date funds that make broad assumptions about retirement needs. A rollover IRA may allow for more customization:

Personalized Asset Allocation:

• Specific allocations based on your retirement timeline

• Risk tolerance assessment and implementation

• International diversification considerations

Goal-Based Investment Approaches:

• Income-focused strategies for early retirees

• Growth-focused approaches for younger professionals

• Inflation protection considerations for long-term preservation

• Legacy planning integration for high-net-worth families

Tax Planning Integration:

• Asset location across multiple account types

• Roth conversion opportunities

• Tax-efficient fund placement

• Coordination with Social Security and pension income

4. Address Administrative Considerations

Simplifying your retirement savings while addressing cost factors.

Many employer plans have administrative fees that may impact your returns:

Common 401(k) Administrative Costs May Include:

• Annual account maintenance: $50-150

• Investment management fees: 0.5-1.5%

• Transaction fees: $10-50 per trade

• Loan origination and maintenance fees

• Early withdrawal processing fees

IRA Considerations:

• Many major custodians have competitive account fee structures

• Online trading for most mutual funds and ETFs often available

• Competitive transaction fees for rebalancing

• Direct access to fund companies

• More flexible withdrawal rules than employer plans

Note: Our IRA Investment Advisory Fees Range from 0.60 – 1.00% depending on account size and services.

5. Integrate with Your Comprehensive Financial Plan

Coordinate retirement accounts with your complete financial picture.

Your 401(k) should work with your complete financial strategy:

Tax Planning Integration:

• Coordinate with Roth IRA conversions when appropriate

• Optimize withdrawal sequencing in retirement

• Plan for required minimum distributions (RMDs)

• Manage tax considerations across multiple income sources

Estate Planning Coordination:

• Beneficiary designation optimization

• Trust integration considerations

• Charitable giving strategies when appropriate

• Asset protection planning considerations

Investment Strategy Alignment:

• Coordinate with taxable investment accounts

• Balance growth and income across all accounts

• Implement rebalancing strategies

• Access alternative investments** for diversification when appropriate for qualified investors

6. Consolidate Multiple Accounts

From scattered retirement accounts to streamlined wealth management.

Many professionals accumulate multiple 401(k) accounts throughout their careers, creating management considerations:

Potential Issues with Multiple Accounts:

• Difficulty tracking overall asset allocation

• Duplicated investment strategies

• Higher combined fees in some cases

• Complex beneficiary management

• Administrative complexity

Consolidation Potential Benefits:

• Single account for easier monitoring

• Streamlined investment strategy

• Potential for lower overall costs

• Simplified required minimum distributions

• Better beneficiary coordination

Professional Management Considerations:

• Unified investment policy statement

• Coordinated rebalancing across holdings

• Comprehensive performance reporting

• Integrated tax planning and optimization

7. Consider Professional Fiduciary Management

Expert guidance focused on your best interests.

Rolling over to a fiduciary advisor may provide:

Fiduciary Responsibility:

• Commitment to work in your best interest

• Transparent compensation and fee disclosure

• Ongoing monitoring and strategy evaluation

Professional Investment Management:

• Regular portfolio rebalancing

• Market volatility management considerations

• Strategic asset allocation adjustments

Comprehensive Financial Planning Integration:

• Coordination with retirement income planning

• Social Security optimization strategies

• Healthcare and long-term care planning considerations

• Estate and legacy planning coordination

Different rollover strategies for different situations.

Direct Rollover to Traditional IRA

The most common approach.

How It Works: Your old 401(k) funds transfer directly to a traditional IRA without you receiving the money. This maintains the tax-deferred status of your retirement savings.

Potential Advantages:

• No immediate tax consequences

• Maintains tax-deferred growth

• Expands investment options

• Preserves ability for future Roth conversions (Always consult with a qualified tax professional to assess individual implications)

May Be Suitable For: Most situations where you want to maintain tax-deferred status while potentially gaining investment flexibility and addressing cost considerations.

Roth IRA Conversion Strategy

Converting to tax-free growth potential.

How It Works: Your 401(k) funds are converted to a Roth IRA, with taxes paid on the converted amount in the year of conversion.

Potential Advantages:

• Future growth may be tax-free

• No required minimum distributions during your lifetime

• Potential tax-free inheritance for beneficiaries

• Flexibility for early retirement income strategies

Important Considerations:

• Immediate tax liability on converted amount

• May affect your current tax bracket

• Five-year waiting period for penalty-free withdrawals

May Be Suitable For: Those expecting higher tax rates in retirement, individuals with long investment horizons, or those planning for tax-free legacy wealth.

Important: Always consult a qualified tax professional before considering a Roth conversion.

Partial Rollover Strategies

Customizing your approach based on specific needs.

Split Strategy Options:

• Partial Roth conversion (convert some, rollover some) (Always consult with a qualified tax professional to assess individual implications)

• Keep some funds in old 401(k) if advantageous

• Roll different amounts to different account types

Strategic Considerations:

• Tax bracket management

• Age-based withdrawal timing

• Asset protection requirements

• Estate planning objectives

Keep Some Funds in Old 401(k)

When staying put might make sense (less common situations).

Potential Reasons to Consider Staying:

• Exceptionally low-cost institutional funds

• Access to company stock with favorable tax treatment

• Loans or hardship withdrawal needs

• Protection from creditors (varies by state)

Important Note: These situations are less common, and many people may benefit from rolling over to an IRA with professional management.

We work to handle the details to help avoid potential mistakes.

Step 1: Comprehensive Analysis and Planning

Understanding your complete financial picture before making decisions.

Current Situation Assessment:

• Review all existing retirement accounts

• Analyze current investment options and fees

• Evaluate tax implications of different rollover strategies

• Consider integration with overall financial plan

Rollover Strategy Development:

• Determine optimal rollover approach

• Tax planning and timing considerations

• Investment strategy design for new account

• Beneficiary designation planning

Step 2: Account Opening and Documentation

Setting up your new IRA with Schwab custody.

Charles Schwab Account Setup:

• Open IRA account

• Complete beneficiary designations

• Establish online access and reporting

• Set up systematic investment plans if desired

Required Documentation:

• Government-issued ID verification

• Social Security number confirmation

• Rollover paperwork completion

• Investment authorization forms

Step 3: Direct Transfer Execution

Movement of your retirement funds.

Direct Rollover Process:

• Initiate transfer request with old 401(k) provider

• Coordinate with Charles Schwab to receive funds

• Monitor transfer process and timing

• Confirm successful completion

What We Work To Handle:

• Paperwork and coordination

• Follow-up with both custodians

• Transfer timeline management

• Problem resolution if issues arise

What You May Avoid:

• Risk of missed 60-day deadline

• Potential tax withholding issues

• Administrative complexity

• Potential mistakes or oversights

Step 4: Investment Implementation

Working to put your money to work in an optimized portfolio.

Portfolio Construction:

• Implement customized investment strategy

• Asset allocation across multiple asset classes

• Cost-efficient fund selection when possible

Ongoing Management:

• Regular rebalancing and optimization

• Performance monitoring and reporting

• Strategy adjustments based on market conditions and your situation

Important factors that could affect your retirement savings.

The 60-Day Rule

Taking possession of funds instead of direct transfer.

The Consideration: If you receive a check from your old 401(k), you have only 60 days to deposit it into a new retirement account, or it becomes a taxable distribution.

The Approach: Always consider direct rollovers where funds transfer directly between custodians.

Multiple Account Management

Leaving money in various old employer plans.

The Consideration: Scattered accounts with different investment strategies and fee structures can be complex to manage.

The Approach: Consider systematic consolidation of old accounts through strategic rollovers.

Tax Planning Opportunities

Not considering Roth conversion strategies.

The Consideration: Rolling everything to traditional IRA without considering tax diversification or future tax rates.

The Approach: Strategic analysis of partial Roth conversions based on current tax situation and retirement projections.

Custodian Selection

Different IRA providers have different fee structures and investment options.

The Consideration: Some IRA providers may have higher fees or more limited investment choices.

The Approach: Choose custodians with competitive costs and extensive investment options.

Beneficiary Designations

Updating beneficiaries on new accounts.

The Consideration: Old beneficiary designations don’t transfer with rollovers, potentially creating estate planning issues.

The Approach: Immediate beneficiary designation updates as part of the rollover process.

How long does a 401(k) rollover typically take? Direct rollovers usually take 2-4 weeks from initiation to completion. The timeline depends on your old plan’s processing speed and transfer method. We coordinate the process and keep you informed throughout.

Will I pay taxes on a 401(k) rollover? Direct rollovers from traditional 401(k) to traditional IRA are generally not taxable events. Roth conversions do trigger immediate taxation but may provide future tax-free growth potential. We analyze the tax implications of each strategy before implementation.

Can I roll over my 401(k) while still employed? This depends on your plan’s rules. Many plans allow “in-service distributions” after age 59½, and some permit hardship withdrawals or loans. We review your specific plan documents to understand available options.

What happens to my 401(k) loan if I change jobs? Most loans become due immediately when you leave employment. If not repaid, the outstanding balance typically becomes a taxable distribution. We help you plan for this situation and explore alternatives.

Can I roll over just part of my 401(k)? Yes, partial rollovers are allowed in most situations. This can be useful for tax planning strategies, such as converting only a portion to Roth IRA or keeping some funds in the old plan if advantageous.

How do I know if rolling over is right for my situation? We provide comprehensive analysis comparing your current 401(k) options with IRA alternatives, including costs, investment choices, and integration with your financial plan. The analysis is customized to your specific situation and goals.

What’s the difference between working with you versus managing this myself? As fiduciary* advisors, we provide objective analysis, coordinate the entire process, and manage your investments professionally after the rollover. Self-managed approaches may risk mistakes, and self-directed accounts may potentially underperform due to emotional investing decisions.

Can I still contribute to retirement accounts after rolling over? Yes, rolling over doesn’t affect your ability to contribute to current employer 401(k) plans, IRAs, or other retirement accounts. We help coordinate contribution strategies across all available accounts.

Let’s evaluate how to potentially optimize your retirement planning.

Your 401(k) rollover decision could be important for your financial future. The difference between keeping money in an employer plan versus rolling over to a professionally managed IRA may potentially impact your retirement wealth over time.

As fiduciary* advisors working with professionals and retirees in Sarasota, we’ll help you understand your options objectively, coordinate the rollover process if appropriate, and manage your retirement investments for long-term planning.

In a complimentary 401(k) rollover analysis, we may:

• Review your current 401(k) options, costs, and investment choices

• Analyze potential benefits of rolling over to an IRA

• Discuss tax implications and planning strategies

• Explore how a rollover might fit with your complete financial plan

Schedule your complimentary analysis today to explore how a strategic 401(k) rollover might enhance your retirement planning.

Important Disclosures

*This fiduciary duty applies to our advisory relationships under current registration and does not extend to brokerage transactions, which are governed by different standards.

**Alternative investments involve substantial risk, may be illiquid, and are not suitable for all investors. Investors should carefully review offering documents and assess personal risk tolerance before considering such investments. 1031 exchanges involve complex tax and legal considerations; consult qualified professionals before proceeding. See disclosures in footer for additional information.

No Guarantee of Results: No investment or rollover strategy can guarantee specific outcomes. All investments involve risk, including potential loss of principal. Past performance does not guarantee future results.

Educational Purpose Only: This information is for educational purposes only and does not constitute investment, tax, legal, or financial advice. No content should be construed as a recommendation to implement any specific rollover strategy.

Investment Risks: All investments carry risk of loss, including principal. There is no guarantee that any investment strategy will achieve its objectives or avoid losses. Market volatility can significantly impact investment returns.

Tax Considerations: 401(k) rollovers and conversions have important tax implications that vary significantly based on individual circumstances. Tax laws may change, and individual tax situations differ greatly. Always consult with qualified tax professionals before implementing any rollover or conversion strategy.

Rollover Considerations: 401(k) rollovers involve important considerations including investment options, fees, services, withdrawal options, required minimum distributions, and other factors. Before deciding whether to retain assets in a 401(k) or roll over to an IRA, consider all relevant factors including investment options, fees and expenses, services offered, penalty-free withdrawals, protection from creditors and legal judgments, and required minimum distributions.

Hypothetical Examples: All examples and projections are hypothetical and for illustrative purposes only. They do not represent actual investment results or guarantee future performance. Individual results will vary based on specific circumstances, investment selections, and market conditions.

Individual Suitability: Strategies that may be appropriate for one person may not be suitable for another. Individual circumstances including age, income, family situation, risk tolerance, investment objectives, and time horizon significantly affect the suitability of different rollover approaches.

Professional Consultation Required: Before implementing any rollover strategies, consult with qualified tax advisors, financial planners, and other professionals familiar with your specific circumstances.

Geographic Limitations: Services are provided only in states where properly registered.

Custody and Platform: While we custody assets at Charles Schwab, this does not constitute an endorsement of our services by Charles Schwab. Charles Schwab does not supervise our investment advice.