Missed Fortune – What to do With the 401(k)
Posted on | November 24, 2009
With so many people changing jobs or facing unemployment during this economic upheaval, many Americans are faced with the question: What to do with the 401(k)?
In a recent article by The Associated Press on this topic, the advice was expectedly traditional:
- Leave the money in the account with the former employer (you can’t make further contributions, but your 401(k) will continue to go up or down with the market).
- Roll it over into your new employer’s plan.
- Roll the money over into an IRA.
- Cash out the account and suffer the early withdrawal penalty and a mandatory 20 percent withheld in taxes (you’ll still owe more in taxes if you’re in a tax bracket above 20 percent, which most Americans are).
There is a better option: Implement a strategic roll-out (not rollover) of the money in your 401(k) and leverage True Wealth Asset Optimization tactics to put your money to work for you in maximum-funded, tax-advantaged insurance contracts.
With this strategy, it is possible to create new tax deductions that can offset some or all of the tax liability incurred during the roll-out process.
But even if you do incur some tax liability, it is advantageous to get the taxes over and done with now when you are likely in as low a tax bracket as you will ever be, and when your money is worth more than it will ever be.
These maximum-funded, tax-advantaged insurance contracts can do more for your serious money than 401(k)s, IRAs or even Roth accounts, because they allow you to withdraw money tax-free (even before age 59 ½, without penalty).
They also allow your money to accumulate tax-free, and when you pass away, your money transfers income-tax free to your heirs.
So if you’re contemplating the next step for what’s left of your 401(k), explore maximum-funded, tax-advantaged insurance contracts. It’s possible to protect your financial future so you never have to lose again.
Isn’t It Time You Became Wealthy?
*Life insurance policies are not investments and, accordingly, should not be purchased as an investment
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