Understanding a Self-Directed IRA When Leaving Your Job

American IRA CEO, Jim Hitt

The second option is rolling the balance of the 401(k) over to an IRA or even a Self-Directed IRA. In a Self-Directed IRA, investors can utilize a greater variety of asset classes including real estate, precious metals, and more.

Leaving one’s job may just be one of the best times to roll over a 401(k) into a Self-Directed IRA, according to Jim Hitt in a recent blog post at American IRA. The post, “Getting Started in a Self-Directed IRA – Leaving Your Job?” examines what retirement investors leaving their current positions will want to do when it comes to retirement accounts.

Jim Hitt argues that there are a lot of different options available to those who are leaving a job or even simply transferring one job to another. Because retirement investors who have contributed to a 401(k) provided by the company over time might have a lot of money built up, Jim Hitt says that understanding how to handle that money in regard to retirement investing is crucial.

“If someone is leaving a job, then there are a few options available to be aware of,” says Jim Hitt. “The first option is cashing out a 401(k). In most cases, this isn’t recommended. In addition to the immediate income tax hit, the simple fact is most investors are not yet ready to cash out their 401(k).”

The second option, argues Jim Hitt, is rolling the balance of the 401(k) over to an IRA or even a Self-Directed IRA. In a Self-Directed IRA, investors can utilize a greater variety of asset classes including real estate, precious metals, and more. “Typically, anyone under 55 is going to want to roll over so that they can keep holding on to all of that money they’ve built up,” says Jim Hitt.

A roll over is a relatively simple and straightforward process that many investors use to keep any momentum for retirement rolling. This includes putting money previously funding a different type of account into another account of a different style.

“For investors that want to control where their retirement nest egg goes, leaving one’s job is one of the most critical times to have a look at where the retirement money is and what’s going to become of it,” says Jim Hitt.

To read more of Jim Hitt’s blog post on the issue of leaving one’s job and utilizing rollovers, visit http://www.americanira.com/home-links/getting-started-self-directed-ira-leaving-job/ . For additional information, contact American IRA at 1-866-7500-IRA(472).

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