Whenever you terminate employment whether through changing jobs or retiring, you basically have four options on what to do with your employer sponsored retirement plan:
- Leave it in your old employer’s plan
- Roll it to your new employer’s plan
- Roll it to an IRA
- Cash out
FinTrust Investment Advisors can work with you to make sense of the rollover process and determine which of these options makes the most sense for your unique situation. We will provide you with a tax-efficient recommendation that considers eligibility requirements and waiting periods in order to avoid triggering unnecessary tax penalties.
In some cases, rolling into an IRA can offer many benefits:
- Easier account tracking and management through consolidation
- Maintaining tax-deferred status
- Broadening your investment options
- Accessing funds penalty-free for a first-time home purchase
- Accessing funds penalty-free for qualified education expenses
- Potential to convert to a Roth IRA
Rollovers may not be appropriate for every situation. Factors such as bankruptcy protection, timing of required minimum distributions (RMDs), and the ability to take loans against your retirement assets might make one option more attractive than another, which is why we recommend speaking with one of our financial advisors about your specific situation.
To begin evaluating your rollover decision, please contact our Director of Financial Planning, Jonathan Stano, CFP®, AIF® at 864-552-4779 or submit a contact form.