401(k) ROLLOVERS
For many individuals, rolling over a 401(k) or 403(b) is a strategic move that enhances control, flexibility, and long‑term growth potential—especially when leaving money behind with a former employer means missing out on better investment options or more personalized guidance. In most cases, starting a new job is an ideal time to consider a rollover, with only a few exceptions. Our team can help you take control of any retirement assets still sitting in an old employer’s plan by providing comprehensive rollover support and helping you evaluate which investment strategy best aligns with your goals and family’s financial needs.
There are also important tax considerations. While the tax‑deferred growth of 401(k)s and traditional IRAs is valuable, it can become less advantageous as you approach your 70s. Beginning at age 73, the IRS requires you to take Required Minimum Distributions (RMDs) from these accounts—whether you need the income or not. RMDs can be complex to calculate, must be withdrawn by December 31 each year, and failing to do so may result in a 50% penalty in addition to taxes owed.
For some individuals, rolling funds into a Roth IRA—where no RMDs are required—can be a strategic way to reduce future tax burdens and create more flexibility in retirement.
PCRA
The Charles Schwab Personal Choice Retirement Account (PCRA) is a self-directed brokerage option within select employer-sponsored retirement plans. While PCRA offers participants access to a broader investment universe not available in their company sponsored 401(k) plans, it is especially powerful when paired with professional management. Through an advisor-managed PCRA, an advisor designs and manages the investment strategy based on your goals, time horizon, risk tolerance, and broader financial picture. This removes the burden of making complex investment decisions on your own while helping ensure your retirement assets are managed with discipline and purpose.
With an advisor managing the PCRA, investors gain access to a wide range of investments including individual stocks, ETFs, mutual funds, and fixed-income securities, combined with disciplined portfolio construction and ongoing oversight. Advisors leverage Schwab’s institutional-grade trading platform, research, and reporting tools to help manage volatility, pursue diversification, and maintain a long-term focus. This approach is ideal for participants who want expanded investment flexibility and personalized strategy to achieve their long term financial goals.
SOLO 401(k)
An Individual 401(k) through Charles Schwab—also known as a Solo 401(k)—is designed for self‑employed individuals and business owners with no employees other than a spouse. This plan offers the same powerful features of a traditional employer 401(k), including high contribution limits and tax‑advantaged growth, while providing the flexibility and control that independent professionals need. With Schwab’s Individual 401(k), participants can make both employee and employer contributions, allowing for accelerated retirement savings compared to many other small‑business retirement options.
When paired with professional guidance, a Schwab Individual 401(k) becomes a comprehensive retirement solution. Participants gain access to a broad range of investment options—including ETFs, mutual funds, and fixed‑income investments—supported by Schwab’s robust platform and custody services. An advisor can help design and manage an investment strategy aligned with the business owner’s goals, cash flow, and tax planning needs, while providing ongoing monitoring and adjustments. This makes the Individual 401(k) an ideal solution for entrepreneurs seeking flexibility, control, and professional support as they build long‑term retirement security.
