When you leave an employer, their 401(k) plan will usually send you information on your
distribution options and the potential deadline for indicating what you want to do with your
money. If you miss that deadline, a decision will be made for you.
In addition, if your old 401(k) balance is paid directly to you, the IRS requires that you roll
it over to an Individual Retirement Account (IRA) or a new 401(k) plan within 60 days to avoid a
2) Choose Between Traditional and Roth Options
The key difference is when your retirement savings are taxed.
With a Traditional IRA or 401(k):
Plan contributions, including rollovers, are exempt from taxes and grow tax-free until
Upon qualified withdrawal, contributions and earnings are taxed as regular income.
With a ROTH IRA or 401(k):
Plan contributions are made after-tax income – so a rollover from a non-Roth 401(k) to a Roth
plan would be taxed when you roll it over.
Qualified withdrawals in retirement, including all earnings, are tax-free and subject to plan
3) Request a Direct Rollover
In a direct rollover, your money moves straight from your old 401(k) provider to your new IRA or
401(k) account without you ever taking possession of the funds. This avoids the mandatory 20%
tax withholding that applies if your rollover check is made payable to you.
4) Setup the Account Transfer
Your old and new retirement plan providers will have specific distribution procedures, such as
how a distribution check should be made. Follow these procedures to avoid complications, and
consult your financial professional located at your credit union if you’d like help.
5) Select Your Investments
Once you’ve set up your new account, you’ll need to select your investments. Your local Magnifi
Wealth Management financial professional can help you better understand your options and choose
investments that match your goals and risk tolerance.
Note: Some employer 401(k)s do not offer a Roth option, while others may
allow you to combine Traditional and Roth accounts.
This material was created for educational and informational purposes only
and is not intended as tax or investment advice. We suggest that you discuss your specific tax
issues with a qualified tax advisor.
Here to Help: Local Financial Advisors
Get financial guidance from experienced local professionals. Magnifi Wealth
Management Financial Representatives can assist you with a variety of wealth management needs,
including 401(k) rollover services.
Recently, we have had several questions about 401(k) accounts:
I’ve left my job. What are my options?
Can I pull the money out?
How does a rollover work?
I have a few old 401(k)s with former employers. Can I consolidate them?
What’s the difference between Traditional and Roth 401(k) accounts?
It is our job, as financial advisors, to answer all your questions and provide personalized
advice based on your unique financial situation. We offer individualized service tailored to your
specific needs and goals. Magnifi Wealth Management has all the experience and knowledge of
national investment firms but are dedicated to serving the needs of Minnesota.
Above all, we want to make the process easy for you. Our team of advisors is available to meet
with you at whichever is most convenient: virtual meeting, over the phone, or at any Magnifi
Together, we’ll build a road map for your financial future. Set up a no-cost, no-obligation
financial consultation today!
Your Credit Union (“Financial Institution") provides referrals to
financial professionals of LPL Financial LLC (“LPL") pursuant to an agreement that allows LPL
to pay the Financial Institution for these referrals. This creates an incentive for the Financial
Institution to make these referrals, resulting in a conflict of interest. The Financial
Institution is not a current client of LPL for advisory services.
Securities and advisory services are offered through LPL Financial
(LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance
products are offered through LPL or its licensed affiliates. Magnifi Financial Credit Union and
Magnifi Wealth Management are not
registered as a broker-dealer or investment advisor. Registered representatives of LPL offer
products and services using Magnifi Wealth Management and may also be employees of Magnifi
Financial. These products and services are being offered through LPL or its affiliates, which are
separate entities from, and not affiliates of, Magnifi Financial or Magnifi Wealth Management.
Securities and insurance offered through LPL or its affiliates are:
Not Insured by NCUA or Any Other Government
Not Credit Union Guaranteed
Not Credit Union Deposits or Obligations
May Lose Value
The LPL Financial registered representative(s) associated with this
website may discuss and/or transact business only with residents of the states in which they
are properly registered or licensed. No offers may be made or accepted from any resident of
any other state.
Sometimes, sometimes not. If you have already found your vehicle to purchase, we can set up financing right away and you won't need a pre-qualification letter. However, if you get pre-qualified and then shop around for vehicles, we'll send you a pre-qualification letter to bring to dealerships. Some dealerships may also contact us to confirm financing as a business practice.
Your pre-qualification offer is typically valid for 60 days with Magnifi. If we have not heard from you about purchasing a vehicle within those 60 days, then your loan application will be closed and you will need to reapply if you decide to obtain financing after the expiration date.
That's great! Go ahead and fill out an application and we'll help you get the financing together as quickly as possible. If you are working with a dealership, we'll just need the Purchase Agreement and Insurance Card. Our lending staff will help walk through everything with you to get you on the road faster.
We have several methods for you to make your loan payments:
• Magnifi Digital Banking or Mobile App: You can transfer funds from your Magnifi or external checking/savings account into your loan account.
• Online: Use our online loan payment system to set up a single or recurring payment with your debit/credit card or routing/account number.
• Mail: Send a check to: PO Box 232, Glenwood, MN 56334. Please include your Account Number and Loan ID. You will not receive a payment receipt by mail but you can verify the transaction within Digital Banking.
• Branch: Visit any Magnifi location to make a payment.
You can avoid paying as much interest if you make larger or additional payments on your vehicle loan. This will pay down the principal of the loan which means you pay less interest and you could pay off your loan quicker. However, this does not advance your due dates... Meaning, if you make twice the payment amount one month, you will still need to make a payment on the same due date the following month.
Frequently Asked Questions
We have several methods for you to make your loan payments: Magnifi Financial
Internet Banking: You can transfer funds from your Magnifi Financial
checking/savings account into your loan account. Learn more here. Magnifi Financial Mobile
App: You can transfer funds from your Magnifi Financial checking/savings
account into your loan account. Learn more
here. Phone: (888) 330-8482 Pay over the phone with a debit card
or Magnifi Financial account transfer. Mail: PO Box 190, St. Joseph,
MN 56374. Please include your Account Number and Loan ID. You will not receive a payment
receipt by mail but you can verify the transaction within Internet
Banking. Branch: Visit any Magnifi Financial location to make a
Great question! Our members can qualify for membership very easily. You will just need to
work, worship, go to school, or volunteer in one of the 18 counties of our field of
membership. So, when you open your account with us, you will open a one-time $5.00 “Share”
account which makes you a member of Magnifi Financial and an equal owner of our credit
union. And if you ever decide to close your account, you will receive your $5 deposit
back. You can learn more here.
Yes, Magnifi Financial offers additional protection for members to add on to their loans in the event that something unexpected occurs.
Work with your assigned Magnifi Financial team member to discuss the right options for you.