401(k) Rollover

You typically have several options: Leave the funds in your former employer’s plan (if the balance meets minimum requirements), Take a full or partial distribution (subject to mandatory 20% federal tax withholding), Roll the funds into your new employer’s plan (if it accepts rollovers), Roll the funds into an IRA, Roth IRA, or a combination of both.

In most cases, yes. However, there are exceptions—such as reaching age 59½ or becoming disabled—that may allow for an in-service rollover. Our Wealth Management team can review your specific plan and help determine your eligibility.

In addition to 401(k)s, eligible plans include 403(b) plans, 457 deferred compensation plans, and certain pension plans.

It starts with a simple phone call to (608) 826-3570 or an email to wealthmgmt@lakeridge.bank. Our Wealth Management team will guide you through each step and coordinate with your former employer’s retirement provider to make the process as smooth as possible.

A direct rollover moves your retirement funds directly from your former plan to an IRA—no taxes withheld and no penalties. A 60-day rollover involves receiving the funds yourself, then redepositing them into an IRA within 60 days. If you choose this route, your former plan is required to withhold 20% for federal taxes. You must replace that 20% from your own funds to avoid taxation on the full amount.