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Keep Your Retirement On Track and Roll Over Your Old 401(k) Into An IRA

Unless you have a new 401k plan or an existing IRA account to roll your funds into, you have two options to choose from:

Open an IRA

If your new employer does not offer a 401(k) plan or other retirement savings vehicle, or you’re still looking for that next opportunity, an IRA is a penalty-free way to continue saving for the future.

Paychex is here to help! See below for details

Take a Cash Distribution

While it may sound tempting to take a cash payout of your 401(k) savings, there’s several reasons to think carefully, considering the consequences. There’s a 20 percent withholding rate plus your new funds will be taxable income. Additional penalties may also exist – that’s valuable retirement funds that are no longer available down the road. You should only consider taking the cash if you have an emergency need for the money.


Infographic showing Possible scenario of early cash distribution

Paychex Securities Corporation makes it easy to continue saving toward a dignified retirement.

How can I set up an IRA?

Setting up an IRA with Paychex Securities Corporation can be done simply over the phone with the assistance of our licensed specialists. Just fill out this contact form and we will reach out to you to schedule a time to have a service representative call you.

To begin, you’ll need:

  • The last four digits of your Social Security number
  • A preferred and alternate phone number
  • Approximate balance to rollover

Based on this information and our array of investment options, we’ll help guide you through the process and keep you on the path towards reaching your retirement goals. Ensure your retirement assets keep working for you!

business owner

Why should you set up an IRA?

Build up assets, be tax smart, and prepare for a dignified retirement

An Individual Retirement Account (IRA) is a great way for you to keep more of your money for retirement as your money has the chance to continue to grow tax deferred. If you choose this option, you will avoid paying the penalties and taxes from an early cash distribution.

Other Advantages of Establishing an IRA:

  • You can contribute up to $5,500 a year plus $1,000 in additional catch-up contributions in the year you turn 50 years old.
  • You may be able to get a broader range of investment choices.
  • If you're younger than 59½, you can withdraw money penalty-free for a qualifying first-time home purchase or higher education expenses.
The Paychex retirement calculator showing if you are on track for your retirement goals