woman and man drinking coffee

Reasons to Roll

May 19, 2023

When you leave your job or retire, you have an opportunity to manage your funds in an employer-sponsored retirement plan such as a 401(k), 403(b), or government 457(b) plan. Depending on the situation, you generally have four options.* The approach that typically gives you the most control over the funds is to transfer some or all of the assets to an IRA through a rollover.

Three out of five households who owned traditional IRAs in 2022 had executed at least one IRA rollover from an employer-sponsored retirement plan. These were the top reasons for the most recent rollover.

  • 64% Did not want to leave assets with former employer
  • 62% Preserve tax treatment of savings
  • 61% Consolidate assets
  • 54% More investment options
  • 44% Required to take all assets out of former employer’s plan
  • 43% Keep assets with same financial services provider
  • 40% Use different financial services provider
  • 30% Easier to roll assets to an IRA than to a new employer’s plan

*Other options may include leaving assets in the former employer’s plan, transferring assets to a new employer-sponsored plan, or withdrawing the money.

Source: Investment Company Institute, 2023 (multiple responses allowed)


Important Disclosures

Valuing Your Trust

If you’re not already a valued client of Providence Wealth Advisors, we encourage you to learn more. To schedule a no cost, no obligation conversation, contact us to learn more at your convenience.