The In-Service Alternative Rollover: Protecting The Value Of Your 401(k)

Remember your parents and grandparents’ pensions?  What if you could have some of the same benefits that they enjoyed from their pension, with your 401(k) dollars?

Pensions gave an identifiable, calculable benefit.  Typically, pensions were based on age and years of service, multiplied by an average salary.  Unlike today’s retirement plans, the benefits of pensions were not directly dependent on the stock market.  Retirement today is vastly different.

About 30 years ago, employers began shifting from traditional pensions to 401(k) plans.  The main reason: cost.  You see, the employer was responsible for guaranteeing pension benefits to employees. Your father and grandfather (or grandmother) contributed nothing.  If the stock market crashed, then the employee did not care, at least not as far as his or her retirement was concerned.  The reason: pension plans were not tied to the markets.

With a 401(k) plan, employers require employees to provide the contributions.  In some cases, employers will match a certain amount of what you contribute.  But that is the catch – the employee has to pay for it.  And that’s not all!  With a 401(k) plan, who bears the risk of a market decline: the employee.  A falling market could at best delay your planned retirement.  And a market decline after you retire could severely impact your standard of living.

At Zwick Law, in coordination with a financial professional who is experienced with the process known as an In-Service Alternative Rollover (ISAR), we may have the answer.  We may be able to restore some of the traditional pension-like benefits that your parents and grandparents enjoyed.  Benefits such as guaranteed, knowable monthly income, regardless of market performance.  That means, with our assistance — and the guidance of an ISAR-experienced financial planner — you can:

  • know for certain what you can depend on in retirement;
  • take comfort in guaranteed, continued payments to a spouse, if elected;
  • eliminate (or at least reduce) market worries – while a rising market may benefit you, a falling market does not impact the guarantees; and
  • obtain peace of mind before and during your retirement.

The In-Service Alternative Rollover (ISAR) is a legal process that, with the help of an ISAR-experienced financial professional, may protect your 401(k) benefits. To learn more about the ISAR process and whether it may be right for you, contact Attorney C.J. Zwick for more details.

Zwick Law is a full-service law firm with offices in DuBois and Brookville, Pennsylvania.  The attorneys at Zwick Law routinely represent corporations, associations, municipalities and individuals across Pennsylvania and West Virginia.  Find out more about Zwick Law by visiting https://zwick-law.com.