Skip To Content

email print Shareshare

Retirement Center

The Rollover Revolution

An IRA Rollover could be a powerful ally in your quest for financial independence

There’s a revolution under way in the individual retirement account (IRA) market. Millions of baby boomers are rolling qualified savings into IRAs; employers are offering employees the opportunity to roll 401(k) assets into IRAs; and new Roth IRA conversion rules are making rollovers a potentially attractive option for many investors.*

As a result, rollovers from qualified retirement plans will represent almost $2 trillion in IRA asset flows by 2013, according to Cerulli Associates.*

How do you know if a rollover is right for you?

Start with the Eaton Vance Rollover Revolution Brochure

 Inside, you’ll discover:

  • Reasons to roll your 401(k) to an IRA
  • Why to consider rolling all your retirement accounts into one IRA
  • Compelling reasons to pursue a Roth IRA conversion.
  • The potential benefits of in-service withdrawals
  • Eaton Vance strategies that may fit your retirement portfolio


    A primary advantage of moving retirement assets to an IRA is the freedom to invest retirement funds in any available arrangement. Many 401(k) plans may limit investments to certain conventional mutual funds available under the plan. These fund options may not be the best alternatives for meeting the investor’s retirement goals.

    As baby boomers move (or contemplate moving) from the wealth accumulation phase to the distribution phase, they want their retirement funds to produce dependable income. Yet investors also want investments with the potential for asset growth, while minimizing the downside risk that may be associated with some equity investments. By moving assets to an IRA, investors can access investment vehicles that may not otherwise be available under their 401(k) plans.

    Click here to see how Eaton Vance Funds for Your Retirement May Help You Declare Financial Independence

    The Roth Conversion Opportunity

    Another reason to consider moving assets from a 401(k) to an IRA is the Roth Conversion Opportunity.

    Roth IRA conversions: Instead of rolling 401(k) funds to an IRA, a participant eligible for distributions might choose to transfer those funds to a Roth IRA. Holding retirement funds in a Roth IRA permits an investor to receive retirement income free from federal income tax (subject to certain exceptions). In addition, while funds invested in a traditional IRA must begin to be distributed when the holder reaches age 70-1/2, no such distributions are required from a Roth IRA. Rather, a Roth IRA holder may choose to maintain assets in the account, where they can continue to accumulate tax-free. Upon death, the Roth funds are distributed to the named beneficiaries (either within five years or over the beneficiary’s lifetime) and retain their tax-free character, so that the beneficiary, like the original Roth holder, receives the assets entirely tax-free.***

    Click here to learn more about this opportunity and find out whether you are a candidate for a Roth IRA conversion

     

    Whether you’re retired, close to retirement or decades away from it, ask your financial advisor if a rollover IRA is right for you. It may be the winning strategy in your fight for financial freedom.

    *Source: Cerulli Associates: Cerulli Quantitative Update, Retirement Markets 2009
    ** Friedman, A. (2009). Preparing for a Secure Retirement: The 401(k) Plan Rollover. White paper
    *** Friedman, A. (2009). Investing In a Rising Tax Environment: The Roth Conversion Opportunity. White paper


    • Eaton Vance is not providing legal or tax advice as to the matters discussed herein. The discussion herein is general in nature and is provided for informational purposes only. There is no guarantee as to its accuracy or completeness. It is not intended as legal or tax advice and individuals may not rely upon it (including for purposes of avoiding tax penalties imposed by the Internal Revenue Service or state and local tax authorities).