By Jenni Riley, MBA, FPQP™
It’s a natural aspiration to climb the career ladder. Sometimes that ascension leads to changing employers for your next position. Whether your employment situation changes by choice or circumstance, you don’t have to leave your old retirement account unattended.
You have options to bring former accounts along with you and ensure your nest egg is invested in supporting your ultimate retirement goals.
Leave your retirement account with your former employer.
I get it; life is busy. Leaving your account where it is is the easiest path. Do know that nonemployee accounts within a former employer’s plan can be subject to higher fees. Changes in the plan may not be made known to you in a timely manner when you’re no longer employed with the firm. It’s also easy to lose sight of those forgotten assets as you move forward on your new career path.
Roll your retirement nest egg into your new employer’s 401(k)
Suppose you are taking a job with a company that offers a retirement plan. In that case, you may be able to consolidate your retirement portfolio by rolling your account with your former employer into your new employer’s plan. Alternatively, you may anticipate an employment gap between positions. In that case, you will want to ensure you document the information you’ll need to access later when you become eligible for participation in another employer’s plan.
Roll it into an IRA
Especially if you have left more than one retirement account with former employers in your wake, you can simplify life by rolling those unattended accounts into an individual retirement account (IRA).
From the 2019 Survey of Consumer Finances, we know Americans averaged $282,554 in retirement savings. That’s a sizable nest egg worthy of attention. We recommend you know your rights, opportunities, and options.
“Wealth is not about having a lot of money; it’s about having a lot of options.”
– Chris Rock
Jenni Riley, FPQP™, is a Financial Paraplanner Qualified Professional™ and Director of Operations with HAZLETT WEALTH MANAGEMENT, LLC, independent of Raymond James and is not a registered broker/dealer. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc. Securities are offered through Raymond James Financial Services, Inc., member FINRA/SIPC. 675 Sun Valley Road, Suite J1 + J2 Ketchum, Idaho 83340 208.726.0605. HazlettWealthManagement.com
