A rollover IRA is an individual retirement account often used by those who have changed jobs or retired. A rollover IRA allows individuals to move their employer-sponsored retirement accounts without incurring tax penalties and remain invested tax-deferred. Consolidating multiple employer-sponsored retirement accounts can make it easier to monitor your retirement savings.

If you take a distribution from your 401(k) you have 60 days to change your mind and do an indirect rollover to another tax deferred account. Most 401(k) plans let you leave the assets in the plan as long as it's above a minimum balance threshold.

Potential downsides to rolling over to a 401(k) are loss of investment and fees associated with the new account.

The decision to rollover a 401(k) depends on individual circumstances and goals. It may be beneficial for consolidating retirement accounts and gaining more control on investments.

The rules for rolling over a 401(k) are to:

• Choose a qualified retirement account and open it
• Initiate the rollover with proper documentation
• Complete the rollover within 60 days of the distribution from the old 401(k) account

Deciding to roll over a 401(k) depends on many factors like your financial goals, fees associated with rolling over and opening a new account, and your personal investment options. 

To roll over a 401(k) from one company to another, contact the new provider, complete necessary paperwork, and coordinate the transfer.

Rolling over a 401(k) without penalty may involve directly transferring funds to the new account or using a trustee-to-trustee transfer.

While you can rollover your 401(k) yourself, it's advisable to consult with financial professionals to navigate potential tax implications and choose the best strategy.

You must have experienced a “triggering event” to roll over. Common events include changing jobs, retiring, death, or disability. Please contact your plan administrator to determine whether you are eligible.

In three simple steps:

1. Open a Prudential IRA.
2. Contact the record keeper of your old employer-sponsored retirement plan to request a rollover.
3. Choose your investments.

^*Note: If you have an existing rollover or traditional IRA at Prudential, you can roll your assets into that account.

Yes, but be aware that some employer plans do not allow assets from a traditional IRA to be rolled back into an employer-sponsored retirement plan.

Generally, pretax assets are rolled into a rollover IRA or traditional IRA. After-tax assets are rolled into a Roth IRA.

You can roll pretax savings into a Roth IRA but doing so would be treated as a taxable event. Similarly, you can roll after-tax savings into a traditional IRA, but this requires careful tracking of your assets for when you start taking distributions. Please consult your tax advisor about your personal circumstances.

Generally, there are no tax implications if you move your savings directly from your employer-sponsored plan into an IRA of the same tax type (e.g., pretax to a traditional rollover IRA or Roth 401(k) to a Roth IRA).

If you choose to convert some or all of your pretax retirement plan savings directly to a Roth IRA, the conversion would be subject to ordinary income tax.

Maybe. The ability to do partial distribution varies by employer. Check your plan's rules for more information.

The distribution will be subject to mandatory tax withholding of 20%, even if you intend to roll it over later. This withholding can be credited to your income tax liability when you file your federal tax return if you roll over the full amount of any eligible distribution you receive (the actual amount received plus the 20% that was withheld) within 60 days.

If you are not able to make up for the 20% withheld, the IRS will consider the 20% a taxable distribution—it will be subject to regular income tax and, if you are under age 59½, an additional 10% early-withdrawal penalty.

Yes, if you have after-tax (e.g., Roth 401(k)) savings, you can roll it directly into a Roth IRA without incurring any tax penalties. If you have pretax savings, converting those savings to a Roth IRA will be treated as a taxable event.

You can choose to roll company stock into an IRA or a taxable brokerage account. If you decide to roll the stock to an IRA, its full value will be taxed as income at your regular rate; if you move the stock to a taxable brokerage account, you might be able to save money by paying capital gains taxes (which may be at a lower rate than your income tax rate) on the difference between the stock‘s value and the price you paid for it. There are tax benefits to each, so consult your tax advisor and ask about the “net unrealized appreciation” (NUA) strategy.