# The Ins and Outs of a 401(k) Rollover

While there are many benefits to rolling over your 401(k), the actual process has traditionally 
been a bit tedious. We’re here to change that.

## What is a Rollover?

Each time you change jobs, or if your current retirement plan is being terminated, you must decide what to do 
with your previous 401(k) plan assets. You can continue the tax benefits of your plan by transferring – or rolling 
over – your account balance to your new employer's 401(k), an individual retirement account (IRA), or certain
other kinds of accounts.

## How Can Vestwell Help?

We make it easy for you to complete a rollover into a Vestwell account. Vestwell provides employees with the 
necessary documentation to initiate a rollover, and make ourselves available at help@vestwell.com to answer 
any questions or provide guidance.

## Why Should I Consider Rolling My 401(k) to Vestwell?

Besides the convenience of consolidating your retirement plans, there are a number of other benefits to 
consider when making the move:

## Better Investment Options

Your prior 401(k) plan may have offered a limited menu of investment options or may have required you to 
invest in employer stock. The Vestwell Platform offers a diverse array of funds, model portfolios, and target 
date funds. And don’t worry, if you have no idea what that means, we’re here to help!

## Lower Fees

In general, Vestwell’s fees are below industry benchmarks and Vestwell does not receive any indirect revenue 
for services provided to your plan. Your prior plan may have had higher fees and those are assessed against 
your account, which could reduce your overall savings. To compare, ask for a fee disclosure from your previous 
provider. You received a Vestwell fee disclosure with your welcome email.

## Easier Management

An average employee changes jobs 12 times during their career. Holding your investments in one account 
provides you a complete view of your retirement portfolio so you can make decisions accordingly.

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## Loans

If you have an outstanding loan on your original plan and want to avoid immediate repayment, rolling the 
assets over to another qualified plan could help you avoid penalties.

## Do I Have to Roll Over My Previous 401(k)?

The short answer is, no. If your prior plan allows, you can leave your account with your previous provider or 
take a cash distribution. However, it is worth noting the following.

## Leaving It

If your vested 401(k) balance is $5,000 or less, your previous employer may require you to take your money 
out of the plan when you leave the company. Additionally, your previous employer can require you to withdraw 
your funds once you reach the plan’s retirement age.

## Cashing Out

Though tempting, cashing out your 401(k) plan comes with taxes and penalties, as the funds will be treated as 
a taxable distribution. As a result, it would be subject to a 10% penalty if you are under 59 1⁄2. Additionally, 
the taxable portion will be added to any other taxable income for the year and can move you into a higher tax 
bracket.

Ultimately, Vestwell is here to help you meet your retirement goals, but it is up to you to decide how to treat 
prior funds. Should you decide to move your prior retirement plan account balance onto the Vestwell platform, 
we look forward to partnering with you every step of the way. You can reach us any time at help@vestwell.com.

## mailto:help@vestwell.com help@vestwell.com .