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If you have recently changed your job and you have a 401k account, you think of rolling over the funds from this retirement account an AARP Funds Rollover IRA (Individual Retirement Account). This might be the smartest decision you make as you will be able to invest the funds from your 401k account in any of the AARP funds. Your money will grow tax-deferred and AARP Funds will charge you a small annual fee to ensure that everything works for you.
A rollover IRA is an IRA especially designed for people who have funds and assets in a previous employer’s retirement plan. Therefore, those with 401k retirement plans can easily qualify for this type of IRA. You rollover the funds directly into the IRA and you will not be paying any taxes or incurring any penalties.
When you do a 401k rollover to an IRA, you in fact distribute the monies into a number of available open market investments. Here your money continues to grow tax-deferred and you have complete flexibility to allocate the assets to which ever investment option you want. The benefit is that unlike most 401k plans where you money gets locked for the duration of your employment, by having an IRA you can exercise government limits on 401k rollover once in every 12 months.
Now you no longer have to worry about what will happen to your 401k funds. AARP Funds is there to help and you just have to pay $10 annually for fund maintenance. You will have peace of mind and your retirement life will get the security it deserves.
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