March 29, 2019

In-Service Rollovers

By Richard J. Schillig, CLU, ChFC, LUTCF
Independent Insurance and Financial Advisor

Now that income tax season is over or soon to be over, let’s review another retirement planning strategy that could be very appropriate for many readers. This strategy is a little known option with 401K Plans (and/or Profit-Sharing Plans) called an ‘In-Service’ (or non-hardship) Rollover. This strategy provides as much greater opportunity for control, diversification and safety options that may not be available within the 401K Plan. The Rollover is available in some 401K plans while you are still employed. We normally associate Rollover when we terminate employment with a company. However, ‘In-Service’ Rollovers are available on many 401Ks and provide additional retirement planning opportunities.

First and foremost – your 401K plan MUST allow for In-Service Rollovers. How do you find out if your plan allows for In-Service Rollovers? Well – there are several ways to do this – first check with your HR representative assigned to the 401K and just ask the question…..does our plan allow for  In-Service Rollovers (remember – also called non-hardship withdraws)? OR when you receive your quarterly 401K
statement, usually there is an 800 number for questions or information. First quarter 2019 statements will be available soon. OR with today’s technology often statements are immediately available via the internet. Check your online statement for that toll-free 800 number and make the call. Our office can assist with determining the availability of the In-Service Rollover at your request. When you have verified that your 401K plan allows In-Service distributions….then you want to look at the benefits for making this decision.

Why consider an In-Service Rollover? I believe there are several reasons for considering this move. These include more control of your retirement assets and more diversification and options for safe money harbors – all of these are reasons to consider In-Service Rollover.

More and more financial industry news continues to emphasize the individual – you and I – need to take more individual responsibility and control over our future plans. There is no better way to take control and have more flexibility and options than to exercise this In-Service (non-hardship) Rollover.

Our fixed and fixed index annuity strategy is available to receive In Service Rollover funds. The value of the fixed index annuity for a portion of retirement money brings the diversity and safety need within your retirement portfolio. Further many index annuities pay a nice initial bonus that gives the retirement money a terrific boost. We are available to provide additional details at your request. Call our office at 563-332-2200 or email anytime:

If you are already retired and still hold your 401K (or profit sharing plan) with your former employer, encourage you to exercise that Rollover today and receive that same control & flexibility & bonus for further retirement planning. Always remember, retirement planning cannot stop when retirement begins. Retirement planning is an on-going effort that continues well into our retirement years.

During the month of April, we continue our Community Meetings for folks aging into Medicare. If you are turning 65 and becoming eligible for Medicare sometime in 2019 these meetings will be very informative. You are welcome to attend one meeting or both meetings. On April 16 our topic is the basics of Medicare and the choices you have with Medicare with a focus on the Medicare Supplements Plans. Thursday April 18 we again review the basics of Medicare with a focus on the Advantage Plan alternative.

Richard J. Schillig, CLU, ChFC, LUTCF is an Independent Insurance and Financial Advisor with RJS and Associates, Inc. He can be reached at (563) 332-2200.

Filed Under: Finance