IRA Rollover FAQ's

Should I Roll Over My 401(k) or 403(b) To An IRA?

Leaving your employer or stepping into retirement is a major milestone —

And it comes with an important question: what should you do with your workplace retirement savings?

For many people, rolling a 403(b) or 401(k) into an IRA is a smart next step.

Here are the answers to the questions we hear most often:

The Basics

*What is a rollover and how does it work? A rollover is the process of moving your retirement savings from your workplace plan into an IRA you own and control. When done correctly as a direct rollover, it is not a taxable event — your money simply moves from your workplace retirement account to a completely independent one without triggering taxes or penalties.

*When am I eligible to roll over my workplace plan? Two key life events typically make you eligible:

You've separated from service — retired, changed jobs, or left the employer where the plan was held
You've reached age 59½ — at which point many plans allow an in-service rollover even if you're still working

*Will I owe taxes when I roll over? Not if it's done correctly. A direct rollover — where funds transfer directly from your plan to your IRA — is not taxable. Problems arise when people receive a personal check and don't redeposit the full amount within 60 days. Working with an advisor ensures the transfer is handled cleanly.

Why Consider an IRA?

*What are the advantages of an IRA over staying in my workplace plan? Once you're no longer receiving employer contributions, an IRA often makes more sense for several reasons:

More investment choices — IRAs offer a much broader range of options than most employer plan menus
Potentially lower costs — especially important for older 403(b) annuity products, which can carry fees of 2–3% annually
Greater flexibility — easier access to your money without employer plan restrictions or third-party processing
Personalized management — your portfolio can be built around your specific retirement income needs rather than a generic fund lineup

*What about 403(b) plans specifically — are they really that expensive? Many legacy 403(b) products — particularly those sold to public educators — were structured as annuity contracts with multiple layers of fees. These costs can quietly erode your savings over time. Once you're no longer contributing through payroll, a transparent IRA is often a more cost-effective and flexible alternative.

The Process

How does the rollover process actually work? The steps are straightforward when working with an experienced advisor:

Review your current plan — understand your balance, fees, and any restrictions
Open your IRA — establish the account that will receive the funds
Initiate the direct rollover — funds transfer directly, no taxes withheld
Build your investment strategy — your portfolio is constructed around your retirement income goals

The most time-consuming part is often gathering paperwork from legacy plan providers. Your advisor handles that coordination on your behalf.

Do my beneficiary designations transfer automatically? No — this is an important step that's easy to overlook. You'll need to name beneficiaries on your new IRA separately. This is actually an opportunity to align your account with your broader estate planning goals.

Working With an Advisor

Do I need an advisor to do this? You're not required to — but the rollover decision touches your taxes, income needs, Social Security timing, investment strategy, and estate planning all at once. A fiduciary financial planner ensures the decision fits your complete financial picture, not just the mechanics of the transfer.

What should I look for in an advisor? Look for someone who:

Holds a CFP® designation
Operates as a fiduciary
Has experience with retirees and pre-retirees
Charges transparent fees — not commissions tied to product sales
Takes a whole-picture approach to your finances

Ready to Talk?

We offer a no-obligation conversation to help you understand what you currently have, what it's costing you, and whether an IRA rollover makes sense for your situation. No pressure — just clarity.

📞 (678) 949-9277 🌐 dover-financial.com

This content is for educational purposes only and does not constitute personalized financial, tax, or legal advice. Individual circumstances vary. Please consult a qualified financial advisor before making decisions about your retirement accounts.