MyREtireWork

My Retirement Account at Work

Changing Jobs?

Many people who are changing jobs or approaching retirement are simply too overwhelmed with other issues to focus on their 401(k), 403(b) or 457 plans. The price of neglect can be steep. A lack of understanding or a failure to fully evaluate the consequences can cost you thousands of dollars in lost employer matches, additional taxes and penalties.  StraightLine can help you examine your four options carefully.

Leave the Funds in Your Current Account

Often times there’s nothing wrong with keeping the cash where it is. Most employers give you the option of leaving your funds in your old plan. As long as you’re satisfied with the performance of the investments and administration of the plan, this can be a good option, especially if your new employer doesn’t offer a comparable retirement plan. One thing to keep in mind is that you can no longer contribute additional funds to this account after you have left the company.

Roll Your Money Into An Individual Retirement Account (IRA)

If you roll the proceeds over into an Individual Retirement Account (IRA), you retain all of the tax advantages that you currently enjoy in your retirement account. An IRA typically gives you the opportunity to increase your investment options while allowing the investments to continue to grow tax-deferred.

Transfer the Funds Into Your New 401(k), 403(b), or 457 Account

If your new employer offers its own retirement plan with good investment options, you might choose to roll your current account into the new one. (Not all plans allow you to do this.) If your new plan accepts rollovers from other plans, you must have the money transferred directly from your current plan to the new plan to avoid potential penalties.

Lump Sum Distribution

It can be tempting to take your money all at once, however in nearly every situation, this is the least desirable option.  Tax implications, potential penalties and the serious harm it will cause to your retirement nest egg are just some of the critical items to evaluate when considering this option.

Let StraightLine Decide What’s Best For You

Sit down with StraightLine to discuss your options and ensure you make the right choices for your retirement account.

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Learn how StraightLine can be of service to you

Let us help you establish your organization as a leader in providing for the financial security of your employees. StraightLine also provides professional account management for individuals with 401(k), 403(b) and 457 retirement accounts. We manage the account for you – making changes to allocations as needed. We also offer an advice-only management option. Please let us know your needs and we’ll get right back to you and provide you with “straight” answers to your questions.

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Local / 248.269.8366 • Toll Free / 877.EDU.403b • Email: info@straightline.com

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