When you change jobs or retire, it can be a tumultuous experience. Even under the best circumstances, making a career move requires a series of tough decisions, not the least of which includes what to do with funds in your employer-sponsored retirement plan. Generally, there are four things you can do with your accumulated assets, which include:
- Leave the Money Where it Is. Be sure to check the rules and regulations on this option.
- Take an Early-Disbursement Payout. With this option you will need to pay income taxes and perhaps a 10% additional federal tax if you are younger than 59 1/2.
- Transfer Money to Another Employer Plan. If the new plan allows, move your money to the new plan.
- Roll Funds Over into an Individual Retirement Account (IRA). Rolling over from one qualified plan to another qualified plan may allow your money to continue growing tax-deferred until you elect to receive a payout or receive distribution in retirement. Generally, once you reach 70 1/2, you must begin taking Required Minimum Distributions.
Hunt Country Wealth Management can help you understand the many choices you have and help implement a plan to complete all the details in the most efficient and beneficial method for your situation. The team at Hunt Country Wealth Management would love to assist you with rolling over your 401(k), 403 (b), or TSP plan. Let us help determine which option is best for you and how to best manage the option that will help you reach your financial goals.
Note: The information in this material is not intended as tax advice. It may not be used for the purposes of avoiding any federal tax penalties. Please consult a tax professional for specific information regarding your individual situation.