If you're moving to another employer, you have some big decisions to make.
Should you take your old employer's retirement plan money with you? Which benefit options should you choose? How will your job change impact your financial situation? These are just a few of the questions you'll need to consider.
Get help with financial planning during your job transition
A job transition can present many financial choices and options. At San Gabriel Capital we can help you make the decisions that are right for you and help position you to meet your future career and retirement goals.
Make an informed decision about your retirement savings
Deciding what to do with your retirement savings may not be your first consideration, but it is important. The vested balance in your employer's qualified 401(k) or 403(b) retirement plan is yours to keep.
Is it better to roll the money into an Individual Retirement Account (IRA) or move it to your new employer's retirement plan? Your decision should be based on the choice that offers greater access to your funds, growth potential and tax advantages.
You have a number of options, each with different factors to consider. The following offers an overview of some things to consider, however, you may want to discuss your decision with a financial advisor, who can take into account your specific situation and cover all of the pluses and minuses. Rolling the money to an IRA may not be the best option for everyone.
Roll savings into an IRA
- Offers more investment options than employer plans do
- Keeps your retirement assets consolidated in one account, which is easy to track
- Maintains your tax-deferred growth potential
- Fees may be higher Leave savings in former employer's plan
- Limits your investment choices to those your employer provides
- Requires managing multiple accounts if you switch jobs again
- Provides the easiest option
- Maintains your tax-deferred growth potential
Transfer savings to new employer plan
- Limits investment choices to those your employer provides
- May be subject to income tax and early IRS withdrawal penalties if funds are not rolled into the new plan in a timely manner
- Maintains your tax-deferred growth potential
- Consolidates your employer plan's retirement assets into a new account
Take cash
- Subjects your savings to significant tax and early-withdrawal penalties
- Can jeopardize achieving goals, including retirement
Benefits, finances and other financial planning considerations Along with what to do with your retirement savings, there are other decisions you'll need to make when you change jobs.
A financial advisor can help you address some of these questions:
- Do you understand your new benefits package and options, including health care and life and long-term disability insurance?
- Will you need additional insurance?
- Have you determined how your job change might affect existing employee stock options?
- How might your income and expense changes impact your future financial goals?
Get help with financial planning during your job transition
A job transition can present many financial choices and options. At San Gabriel Capital we can help you make the decisions that are right for you and help position you to meet your future career and retirement goals.