401(k) rollover opportunities are becoming a common event in today's economy. Current layoffs, early retirement, and changing jobs are all times when contemplation of what to do with your 401(k) comes to the forefront. Any of these qualifying events are an opportunity to rollover your 401(k) to an IRA. Even if you are still with your current employer, you may still be able to do an in-service rollover.

First, congratulate yourself for saving through your 401(k). If your employer matched your savings, your account probably grew at a nice pace and your nest egg may give you a sense of security.  As social security benefits are in doubt, saving for retirement has become a significant goal. Your retirement plan is your financial destiny.
 
One of the most important things is to keep the tax-deferred status of your account. If you take a distribution out of your 401(k) you will be required to pay federal income tax according to your income tax bracket and possibly even a 10% IRS penalty for early withdrawal. The 10% IRS penalty is primarily dependent on your age and when the distribution is taken. You ARE allowed to rollover your 401(k) to an IRA with no taxable event or IRS penalty if structured properly and done within the proper timeframe.
 
IRAs almost always have more investment options than 401(k)s. The freedom of an IRA allows you to diversify and invest in traditional assets such as individual stocks, mutual funds and bonds. The IRS even permits you to invest in non-traditional assets such as real estate, tax liens, promissory notes, oil and gas, mortgage notes, deeds of trust and more.
 
You have two options when it comes to moving your monies to a new custodian:
1) You can also "transfer" the money directly to the new custodian and this transaction is not reported to the IRS and less paperwork will be required at tax time.
2) You may rollover your 401(k) to an IRA, the current custodian will report the transaction to the IRS to maintain its tax advantaged status. If you receive the money directly, you will have 60 days to deposit it into another custodial account. If you deposit it after the 60 day period, you may be subject to penalties. 
 
Your IRA must be housed with a custodian at all times. The custodian will direct your money to the investment of your choosing.. It is important to choose a custodian with excellent customer service. You should check to see if they have on-line account access, a toll-free number and specialists who will answer your questions in a knowledgeable manner.
 
All in all the rollover process is a simple one that will help you save for your retirement. Your decisions and your direction will determine your future.