Changing Jobs – Take Your Savings With You

When you leave your current job you have a number of options as to what to do with your 401(k). Some employers allow you to leave your savings in your current plan, or you may be able to place your savings in your new employer’s plan. Your other options are to roll your 401(k) over into an IRA or to take your lump-sum distribution in cash. While taking home a large chunk of money may sound tempting, you’ll lose all tax advantages by withdrawing early, not to mention forfeit up to 30% in penalties. Placing your money instead in a Rollover IRA will allow you to continue to accumulate, preserve tax advantages, and have greater control over your investment choices.

To avoid the 20% prepayment toward federal taxes and the 10% early withdrawal penalty you’d accrue by taking the lump sum distribution, a Rollover IRA is a great choice. Our Retirement Specialists can help you arrange for a direct rollover. This allows you to avoid all penalties and to allocate your funds in the bank and investment options that reflect your diversification goals and risk tolerance.

You can consolidate all of your current retirement savings into one Rollover IRA, or split your rollover between a bank IRA for your CDs or money market account and an investment IRA for your mutual funds.

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