Let’s say you’re leaving one job and (hopefully) headed to another. Or you left retirement plan assets with a previous employer.
To Roll or Not to Roll (Over) Your Former Employer’s Retirement Plan?
Should you leave your retirement assets behind or move them to a new custodian? Did you know that both the custodian and your former employer can share in the fees?
What are the benefits of either course of action? If you do neither and simply ‘cash out’, what are the tax implications?
If left behind there’s a chance the company may be acquired, merged or just go out of business. Then what? How will you access your money? How will you even find the company and get your money?
What if you move and they lose track of you due to returned mail or invalid email addresses? How will they (eventually) track you down? Or how will you find them? Isn’t there a central source for information like this?
Would you like to have more investment choices than may be available where the money is now or in your new employer’s plan? Would you prefer more diversity?
The Rollover IRA and Tax and Inheritance Considerations
Do you want to streamline passage of those assets to your heirs and beneficiaries by consolidating retirement accounts currently in more than one place?
Are you thinking of retiring before age 55 and perhaps tapping your retirement savings?
Does combining the inherent tax-deferral with living benefits such as guaranteed annual increases or guaranteed annual payouts when distributions start interest you? (Guarantees dependent on the claims-paying ability of the issuing carrier).
Do you want to decide which investments to draw from for your RMDs?
If you identify with even one of the questions above, you may benefit from a Rollover IRA.
