Your retirement plan assets may be your most significant legacy when you move from one job to another. If you’ve had more than one employer, as many individuals do, chances are you may have more than one retirement account.
When leaving a job that you have retirement plan assets at, it is important to understand your options. Two of those options are to keep the money in the plan or direct the balance to a rollover IRA.
An Individual Retirement Account (IRA) allows you to combine (rollover) multiple retirement plans into one new one. Managing one IRA may help you track your retirement savings and growth more efficiently over the long term.
Before rolling your accounts into one, it is essential to understand and review any fees and the rates of return associated with a rollover or new accounts. You may contact your current retirement account provider for details on your account. As long as you rollover during a specific period, you will not be taxed on the rollover.
Keep in mind, the laws governing retirement assets and taxation are multifaceted. Visit IRS.gov or consult your tax professional to go over what applies to your specific situation.