200 Park Point Drive,
One of the most important financial decisions workers will make is what to do with assets they have accumulated in their employer’s retirement plan when they leave their job. Traditionally, this decision needed to be made when workers retired, but it’s not just a retirement issue anymore.
Today, most workers will change jobs several times during their working years. Unlike past generations that may have spent most of their career with a single employer, the median tenure for a worker today is only 4.6 years. Each worker who decides to go to work for a new employer may be faced with the decision of what to do with the retirement plan assets in the prior employer’s plan. The choices workers make each time they change jobs will have a significant impact on their retirement nest eggs.
You are able to withdraw assets from your 401(k) plan only if you experience a triggering event. For most 401(k) plans, the triggering events are the following:
Determining which option is best for you can be challenging. There is no “one size fits all” solution. The best choice will vary depending on your financial needs and savings objectives.
Some rollovers occur automatically, even though an individual has not requested a payout from the employer plan. Many plans are designed to automatically pay out assets when a worker terminates employment if the individual has a plan balance less than $5,000 and has not directed the plan administrator to either make a distribution or roll it to another plan. These payouts are sometimes referred to as “automatic rollovers” or “force-outs.”
* This is a list of many, but not all of the considerations that should be taken into account before a decision is made. To best understand your options, set up an appointment with one of our Financial Advisors.
Contact us and gain a strong understanding of what options there are available to you with no obligation to move forward.
Cornerstone Advisory Group
200 Park Point Drive
Rochester, NY 14623