Moving your retirement plan money with you when you change jobs may be an option to consider. Make sure to review your new employer’s policy on rollovers from other plans.
Benefits of rolling into a new plan
Rolling your money into a new employer’s plan gives your retirement assets the opportunity to continue growing tax-deferred. It’s also convenient to have your assets all in one place. Your new plan may provide additional benefits, such as:
- Automatic investing. If your new plan allows employee deferrals, you can take advantage of payroll deductions to regularly contribute to your retirement account. You may be able to contribute up to $19,500 for 2021.
- Extra contributions. If you’re age 50 or older and your plan allows employee deferrals, the plan may also allow you to make additional catch-up contributions beyond the annual limit — up to $6,500 for 2021.