Starting a brand-new new job is exciting and full of a lot of new benefits, but don’t forget about the retirement plan you left behind.
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There are many different ways to handle an old retirement account and here are your four options:
| Options | Pros | Cons |
| Leave it where it is | No action needed, stays invested | Easy to forget, limited fund choices |
| Roll into new plan | Keeps all retirement in one place | Must wait for eligibility, paperwork |
| Roll into individual retirement account (IRA) | Full control, more investment options | May come with fees or need investment know-how |
| Roll into individual retirement account (IRA) | Fast access to money | Taxes + 10% penalty = less for you later |
Which Option is Right for You?
While there isn’t any definite answer, there are a few things you should consider before moving your old retirement plan. First, are you happy with your old plan’s performance? Has it grown since you first invested in it? Second, is your new plan better in terms of features and fees? Would it be worth moving it over? And lastly, do you prefer simplicity or control? Meaning, would you rather not worry about it and leave it in its current plan or move it somewhere that you can control its investments and outcome?
How to Take Action
Before you decide what to do with your plan, it’s worth taking a look at your balance. Log into your old plan and check the balance, especially if you are contemplating cashing it out. Once you’ve decided which route to take, contact your new Human Resources or plan provider and ask about the rollover process. They will be able to assist and guide you through this process.
Just because you changed your job doesn’t mean you need to change your retirement goals. Your retirement deserves to move with you, wherever you’re headed next.