Rolling Over Employer Sponsored Retirement Accounts

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24 Mar 2022 Retirement Income Planning

I Changed Jobs… What Should I Do with My Employer-Sponsored Retirement Account?

It is rare for someone to stay at one job for the entirety of their career. In fact, many people change jobs multiple times to move up the corporate ladder. If you are in the process of moving to a new employer, there is an important financial decision you need to face: how to handle your employer-sponsored retirement account.

Here is an overview of the options you can consider for your employer-sponsored 401(k):

Cash Out the Account

You can cash out your old account – but be aware that this might be one of the worst choices you can make. If you pull the money prematurely, it will trigger a tax bill and possibly early-withdrawal penalties! In addition, you may be disappointed to see the amount of money they will have left after cashing out.

Plus, this decision destroys your nest egg and puts your retirement savings plan at risk.

Leave the Money in the Original Plan

you might have the option to leave the money in the original plan. This solution is easy, especially if you feel like it is a good plan.

But there may be a few disadvantages. For example, you might only have a set number of available investment changes or be charged additional maintenance fees since you no longer work for the company.

Roll Into a New 401(k) Plan

Does your new employer offer a 401(k) plan? Then you might choose to roll the money into this new plan. The advantage is that it is nice to have your money in one place to make it easier to manage. Additionally, you might have different investment opportunities with the new company.

A potential disadvantage may be that the new employer does not offer investments that you prefer.

Roll into an Individual Retirement Account (IRA)

Another potential option is to move the 401(k) funds into an IRA. This option gives you flexibility and control over your retirement savings. There are unlimited investment choices to choose from, and a financial advisor can help you select the right type of account. Additionally, you may have more flexibility to select beneficiaries.

Possible disadvantages lie in the potential tax burden if you are not strategic about how the money is moved. Avoid this issue by working with a financial advisor to ensure that the money is transferred directly from the employer-sponsored plan to the new IRA.

Personalized Retirement Advice

If you want personalized recommendations, then contact us at Bulman Wealth Group. We offer comprehensive financial planning, including retirement savings and more.

Disclosure: All content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions. Nor is it intended to be a projection of current or future performance or indication of future results. Opinions expressed herein are solely those of Chris Bulman Inc. dba Bulman Wealth Group and our editorial staff. The information contained in this material has been derived from sources believed to be reliable but is not guaranteed as to accuracy and completeness and does not purport to be a complete analysis of the materials discussed. All information and ideas should be discussed in detail with your individual adviser prior to implementation. Advisory services are offered by Chris Bulman Inc. dba Bulman Wealth Group an SEC Investment Advisor notice filed in California, Pennsylvania, Texas, and Nevada. Investment Advisory Services also offered through Retirement Wealth Advisors, LLC. a Registered Investment Advisor. Bulman Wealth Group and Retirement Wealth Advisors, LLC. are separate entities, independently owned. Insurance products and services offered through Chris Bulman Inc dba BWG Insurance Agency and Ameritas Life Insurance Corp. CA Insurance License #0D57586. Being registered as an investment adviser does not imply a certain level of skill or training. Bulman Wealth Group, BWG Insurance Agency and Ameritas Life Insurance Corp. are not affiliated with or endorsed by the Social Security Administration or any other government agency. The information contained herein should in no way be construed or interpreted as a solicitation to sell or offer to sell advisory services to any residents of any State other than the States of California, Pennsylvania, Texas, Nevada, or where otherwise legally permitted. Images and photographs are included for the sole purpose of visually enhancing the website. None of them are photographs of current or former Clients. They should not be construed as an endorsement or testimonial from any of the persons in the photograph. Purchases are subject to suitability. This requires a review of an investor’s objective, risk tolerance, and time horizons. Investing always involves risk and possible loss of capital.

All content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions. Nor is it intended to be a projection of current or future performance or indication of future results.

Opinions expressed herein are solely those of Chris Bulman Inc. dba Bulman Wealth Group and our editorial staff. The information contained in this material has been derived from sources believed to be reliable but is not guaranteed as to accuracy and completeness and does not purport to be a complete analysis of the materials discussed. All information and ideas should be discussed in detail with your individual adviser prior to implementation. Advisory services are offered by Chris Bulman Inc. dba Bulman Wealth Group an SEC Registered Investment Advisor. Insurance products and services offered through Chris Bulman Inc dba BWG Insurance Agency and Ameritas Life Insurance Corp. CA Insurance License #0M46922. Being registered as an investment adviser does not imply a certain level of skill or training.

Bulman Wealth Group, BWG Insurance Agency and Ameritas Life Insurance Corp. are not affiliated with or endorsed by the Social Security Administration or any other government agency.

Images and photographs are included for the sole purpose of visually enhancing the website. None of them are photographs of current or former Clients. They should not be construed as an endorsement or testimonial from any of the persons in the photograph.

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