Planning Your Future When Leaving Your Job
You’ve been planning for your future and saving for retirement. Now that you are leaving your job, you’re faced with an important financial decision: What to do with your savings so you can stay on track with your retirement goals.
ROLL OVER TO AN IRA
To help keep your retirement savings growing you can roll the money into an individual retirement account (IRA). Rolling your savings into an IRA offers several tax and other advantages:
- Greater Flexibility
- Tax Considerations
You may not be ready to decide about your retirement plan savings now. If you would feel more comfortable waiting or if you think remaining in your plan might be a better alternative, you can usually leave your retirement plan balance where it is.
TRANSFER TO YOUR NEW PLAN
Moving your money to a new employer’s plan is easy. If your plan allows it, you can transfer your accounts balance directly from your former employer’s plan to the new one.
CASH OUT OF THE PLAN
You can cash out your retirement account balance but if you do, you would lose about 1/3 of your before tax savings to income taxes and possible penalties. Weigh this option carefully!
Unsure of what to do??
That’s what we do—Sit down with your and go through your options.
About the Author
Bob feels strongly that you only retire once leaving no room for mistakes. He is dedicated to building and more importantly preserving investors assets. Bob is a Financial Advisor with Cambridge, an independent broker-dealer, honored to be among the most respected firms in the industry.