Leaving a job or retiring is a big change in your life. While you’re anticipating all the adjustments and challenges ahead, however, don’t neglect your retirement plan assets.
When you leave a job, a rollover IRA gives your money the potential to keep growing.
Of course, a rollover IRA is not the only option you have. Carefully compare all your options to make the best choice for you. Keep in mind any tax implications. If you’re not careful, taxes and penalties can eat away much of what you’ve saved.
1. Move your assets into a rollover IRA to keep the same tax benefits, avoid penalties and gain more control of your money.
2. Stay in your old Plan
Not ready to make a decision about your retirement plan money? Staying in the plan while you consider your options keeps your investment tax-deferred.
3. Move your money to a new plan
Moving your account balance to your new employer’s plan lets you keep your retirement plan money with one provider.
4. Cash out
While cashing out may be appropriate in certain situations, doing so may come at a significant cost due to taxes and potential penalties.
Ready to make a decision about your retirement plan money? Find out how to start the rollover process to an American Funds IRA or American Funds retirement plan.
Talk to an IRA Rollover Specialist
Leaving your employer involves many important decisions. American Funds Rollover Specialists can answer your questions and help you initiate your transaction.
If you’re looking for an answer to a specific question about rollovers, consult our Frequently asked questions.
From approaching retirement to paying for college, being prepared for life changes can help keep you on track.
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