Is an In-Service Rollover from Your Lockheed Martin 401(k) Right for You?

Welcome to Advisor Research Partners, where we provide expert consulting and analytical services in the field of business and consumer services. In this informative article, we will explore the topic of in-service rollovers from your Lockheed Martin 401(k) and help you determine if this strategy is right for you.

Understanding In-Service Rollovers

An in-service rollover refers to the process of transferring funds from your existing 401(k) plan while still employed by Lockheed Martin. This option allows you to move your retirement savings into an individual retirement account (IRA) or another qualified retirement plan, providing you with greater control and potential investment opportunities.

The Benefits of In-Service Rollovers

By opting for an in-service rollover, you gain several benefits that may enhance your retirement savings strategy:

• Diversification: In-service rollovers enable you to diversify your investment portfolio beyond the limited options offered within your 401(k) plan. Expanding your investment choices can help you manage risk and potentially increase returns.
• Flexibility: An IRA obtained through an in-service rollover provides greater flexibility in terms of investment options, contribution limits, and withdrawal rules compared to a 401(k) plan. This flexibility allows you to tailor your retirement strategy according to your specific needs and goals.
• Control: With an in-service rollover, you gain more control over your retirement savings. You can choose from a wide variety of investment options, including stocks, bonds, mutual funds, and real estate. The increased control allows you to align your investments with your risk tolerance and long-term objectives.

Factors to Consider

Before deciding on an in-service rollover, it is essential to assess your individual circumstances and evaluate if the strategy aligns with your retirement goals. Here are some crucial factors to consider:

1. Age and Retirement Timeline

Your age and retirement timeline play a crucial role in determining the suitability of an in-service rollover. If you are nearing retirement, an in-service rollover may not provide sufficient time to reap the potential benefits of a diversified investment portfolio. However, if you have several years left until retirement, an in-service rollover can be a valuable strategy to enhance your future retirement income.

2. Employer Plan Features

Consider the features and benefits of your Lockheed Martin 401(k) plan before proceeding with an in-service rollover. Evaluate the investment options, fees, and employer match program. If your 401(k) plan offers competitive investment choices and favorable terms, sticking with the plan may be the right decision.

3. Financial Goals and Risk Tolerance

Your financial goals and risk tolerance are crucial elements in determining the appropriateness of an in-service rollover. Evaluate your risk tolerance and investment objectives. If you are comfortable managing your own investments and have a desire for greater control, an in-service rollover may align better with your goals.

4. Tax Implications

Consult with a tax professional to thoroughly understand the tax implications of an in-service rollover. Different retirement accounts have varying tax treatment, and making the wrong decision can result in unnecessary tax liabilities.

Consult with Advisor Research Partners

Deciding on an in-service rollover requires careful consideration and analysis of your unique circumstances. At Advisor Research Partners, our team of experienced professionals specializes in providing consulting and analytical services tailored specifically for situations like yours. We are here to help you make informed decisions and optimize your retirement savings strategy.

Contact us today to schedule a consultation and take the next step towards securing your financial future.