What are my options to consider when I am retiring or changing jobs?
There are typically four options to consider when leaving an employer’s retirement plan, each with its benefits and considerations.
- Roll the retirement account into an IRA account (IRA Rollover).
- Leave the money in the former employer plan (if allowed by former employer).
- Move the assets to a new employer (if allowed by new employer).
- Withdraw balance of assets or “cash out” of plan.
- Convert all or part of the retirement account into a Roth IRA (Roth IRA conversion).
Converting a portion of your tax-deferred assets to a Roth IRA may be a planning consideration based upon your particular circumstances.
- Each option has its advantages and disadvantages, but the decision should fit into your financial plan.