"We want to thank you for the peace of mind we now have, knowing that our retirement savings is no longer at risk of loss, especially with the recent market volatility, and for the safe sound plan you created for us."
Jack and Jean M.
Dana Point, CA
Dana Point, CA
Leave the Money where it is
If you have a minimum amount of specified by your employer in your current retirement plan, generally, you must be able to leave it there. If you do that, you will continue to enjoy tax-deferred growth potential and avoid the tax consequences associated with "cashing out" (a lump sum distribution).
Typically in a company retirement plan, if you retire at age 55 you can take distributions without incurring the 10% federal tax penalty for early withdraw.
If you decide to leave your money where it is, you would be familiar with the investment options and wouldn’t have the concern about choosing a new investment mix. Additionally, you would have less paperwork that if you moved the money.
- Your former employer’s plan may not allow you to leave your retirement assets in the plan.
- You may be restricted in distribution options, such as withdrawing your money or leaving it to the beneficiary of your choice, sine you must stay within the guidelines of the plan.
- You may be restricted in your investment options, since you must stay within the guidelines of the plan.
- You will have one more investment account, and the accompanying paperwork, to track.
