Booklet

author

Shang

Finance & Accounting

What to Do With an Employer Sponsored Retirement Plan When You Leave the Job?

What to Do With an Employer Sponsored Retirement Plan When You Leave the Job? Swipe for 4 Options

Option 1: keep it where it is, check in on it
That's right. You don't have to do anything with the old account if you don't want to. You can keep it with whoever is administering it, and continue to check in on your investments (l recommend no more than twice a year).
You could still change the investments of the money you've already contributed

Option 2: roll it into a self managed IRA (IRA Rollover)
Those who do this usually do so because they don't like the original plan administrator (limited investment options, high fees), and the new plan administrator is better.

Option 3: roll it into your current employer sponsored plan
You have to make sure your current employer plan is the same tax status as your old plan. You can roll it into the current plan to simplify management and have your plans in one place

Option 4: do a Roth conversion
If your old plan was pre tax (hint, it does not have the word Roth in it), you could strate- gically convert it in a year when you are in a lower tax bracket than normal, to a Roth account. You will owe taxes on the conversion in that year.

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