Changing companies or no longer working?

We can help you stay on track with your retirement when there’s a shift in your employment status. Together, we’ll discuss your best-fit 401(k) options, which can be variations or combinations of leaving the money in your former employer’s plan, rolling over the assets to your new employer’s plan or an IRA, or cashing out the account value.

It’s important to understand that we are objective and fully independent in making our 401(k) recommendations to you. We don’t offer proprietary plans – meaning we have no incentive to sell specific products – and choose to work with all the investment options and providers in the broader 401(k) marketplace.

Rolling over your retirement assets to an IRA

This non-taxable event (when done properly), can give you access to a wide range of investments, offers the convenience of consolidating your savings in a single location, and provides greater flexibility and transparency with your investment selections and any fees. There is also the added benefit of being able to transfer the responsibility of making adjustments or changes to your plan to us – and making use of our proactive investment advice.

Other options to consider

In addition to rolling over your 401(k) to an IRA, there are other options. We can help determine which is most suitable for your specific situation, and share a brief look at additional choices below.

• Leave money in your former employer’s plan (if permitted)
  You may choose to leave your money where it is if the investments offered are to your liking, and there is no additional fee for leaving your money in the plan. (The typical internal expenses still apply.) It is not a taxable event.
• Roll over the assets to your new employer’s plan (if available and permitted)
  It’s also not a taxable event, and keeping all your money together in one place means you have a larger sum of money working for you. There is also the benefit of convenience. Keep in mind, however, that not all employer plans accept rollovers.
• Cash out the account
  This is a taxable event, and, of course, there is also the loss of investing potential. It is even more costly if you are under the age of 59½; in addition to income taxes, there is a penalty of 10%.

Both employer plans and IRAs typically involve investment-related expenses and plan or account fees. Investment-related expenses may include sales loads, commissions, the expenses of any mutual funds in which assets are invested and investment advisory fees. Plan fees typically include plan administrative fees (e.g., recordkeeping, compliance, trustee fees) and fees for services such as access to a customer service representative. In some cases, employers pay for some or all of the plan’s administrative expenses. An IRA’s account fees may include, for example, administrative, account setup and custodial fees.

Of course, you should carefully consider all of your available options and the applicable fees and features of each before moving your retirement assets.