Keeping control of your retirement accountscall out
If you have been displaced or are changing jobs or retiring, one of the most important decisions you may face is how to handle the savings you’ve accumulated in your qualified employer-sponsored retirement plan (QRP), such as a 401(k), 403(b), or governmental 457(b).
Choosing an appropriate strategy can help minimize taxes and make the most of your savings. You generally have four options:
- Roll over your assets into an Individual Retirement Account (IRA)
- Leave your assets in your former employer’s QRP, if the plan allows
- Move your assets directly to your current or new employer’s QRP, if the plan allows
- Take your money out and pay the associated taxes
Each of these options has advantages and disadvantages, and the one that is best depends on your individual circumstances. You should consider features, such as investment choices, fees and expenses, and services offered. A Wells Fargo Advisors Financial Advisor can help educate you regarding your choices so you can decide which one makes the most sense for your specific situation. Before you make a decision, read on to become more informed and speak with your retirement plan administrator and tax professional.