If you have changed jobs, you have options of what to do with your old employer-based retirement plan. You might leave the money in your former employer’s plan (if permitted); roll over the assets into your new employer’s plan (if available and permitted); cash out the account value (be aware of rules regarding age and penalties for early withdrawal), or you might roll the asset over to an IRA. A rollover is not for everyone and we are happy to analyze and review the pros and cons of your situation. Some potential advantages of exercising your rollover option are that you may be consolidating assets and reducing the number of statements you receive. Your investment options may increase when you are no longer restricted by the choices in your old employer's retirement plan. Also, with a Rollover IRA, it opens the possibility of converting part or all of the IRA to a Roth IRA. Conversely, it may be more advantageous to keep your 401k in the current plan. Some of those reasons may include stronger protection against personal lawsuits, the ability to borrow against funds, and lower fees. Again, we will be happy to discuss the advantages and disadvantages to help you make an educated decision.
MAC Insurance & Financial Services, Inc understands the fundamental desire to savor the financial fruits you've worked so diligently to amass throughout your life. We also know that in today’s world “retirement” means different things to different people. Some wish to stop working altogether. Others wish to shift their focus to work that has more personal meaning. We will develop a diversified plan customized for your lifestyle, retirement aspirations, and tolerance for risk.
Steven McLean AIF®
Joshua P. Schmidt
College Planner & Education Consultant