Simplifying Your 401 (k) Rollover: How Prevett Financial Makes It Stress-Free
Rolling over your 401(k) into an IRA can be one of the most important — and sometimes most confusing — financial decisions you’ll make. Whether you’re changing jobs, retiring, or consolidating accounts, making the right move can help you avoid unnecessary taxes, penalties, and investment mistakes. The process has become increasingly more complicated and full of compliance hurdles, which only adds more stress.
At Prevett Financial, we help clients across Kentucky transition their retirement savings smoothly and confidently. Here’s how the process works — and how our team can make it easier.
First: Evaluate Your Options
Before initiating a rollover, it’s important to understand your choices:
Leave your 401(k) with your former employer (if allowed)
Choose former employer plan’s annuity payout
Move it to your new employer’s plan
Roll it into an IRA
Cash it out — though this typically triggers taxes and penalties
We help you evaluate these options based on your goals, tax situation, and investment strategy. Many 401(k)s have limited investment options and even less investment selection guidance. The first step is often the hardest, but does present a great opportunity to make your money work as hard for you as you did to earn it. Choosing to leave the money with the former employer or moving it to a new employer’s plan does not change your investment options, while cashing out the account could cause a major tax hit. The annuity option and it’s income guarantees can be attractive to many employees. This will depend on your risk appetite, age and asset values, which will need to be reviewed. “Rolling over” the account to an Individual Retirement Account (IRA) could give you the most flexibility of all the choices offered.
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Choose: Open Your New Rollover IRA
Once you decide to roll over your 401(k), we assist you in opening a Rollover IRA — structured to receive your existing retirement funds. We handle the paperwork, account setup, and investment allocation, ensuring everything aligns with your long-term plan.
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Execute: Request a Direct Rollover
The safest way to move your funds is through a direct rollover, where the money is transferred directly from your 401(k) to your IRA. This prevents taxes and penalties that can occur if funds are sent to you personally.
Unfortunately many 401(k) providers do not make the process of a Rollover very easy. It is in their best interest to cause the client to not want to go through with the transfer and keep the assets there. In most cases the provider will require the employee to fill out their own paperwork, typically a double digit form that can only be acquired from the former employers HR or from the provider directly. Once the form is secured (typically the only “work” required of the client) our team will assist in filling out the paperwork properly and submitting it correctly. In some cases the 401(k) provider will only send a check to the employee for the balance of the account. This can be a scary proposition to receive such a large check in your mail box with the potential to incur a tax penalty. We will provide you with a document with specific instructions on where to mail the check once it is delivered. As long as this process is completed within 60 days of receipt of the check, taxes are avoided.
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Invest: Reinvest With Purpose
Once the funds arrive in your IRA, it’s time to put them to work.
We design a personalized investment strategy tailored to your age, risk tolerance, and income needs — balancing growth, protection, and tax efficiency.
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How Prevett Financial Reduces Stress
Many investors find rollovers overwhelming because of:
Paperwork confusion
Fear of making a tax mistake
Uncertainty about how to reinvest their savings
At Prevett Financial, we simplify the process by:
Handling every step — from coordinating with plan custodians to setting up your IRA
Ensuring all transfers are completed tax-free and penalty-free
Creating a clear, written investment plan for your new account
Keeping you informed through every stage
Our mission is simple: to make your financial transition smooth, secure, and stress-free so you can stay focused on your next chapter.
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Let’s Get Started
If you’re considering a 401(k) rollover, you don’t have to do it alone.
Schedule a free consultation with Prevett Financial today to discuss your options and get a customized rollover plan.
