Roll into an IRA vs. Move into a new plan

Roll to an IRA	Move to a new plan
Benefits Your money can continue to grow tax-deferred. You can consolidate multiple retirement accounts.	Benefits Your money can continue to grow tax-deferred. You have your retirement assets conveniently consolidated with one provider.
Keep in mind Roth 401(k) or 403(b) accounts will be rolled into a Roth IRA. Non-Roth accounts can be rolled into a traditional or Roth IRA. You’ll be responsible for any unpaid taxes on the taxable portion of a Roth IRA rollover. You can avoid required minimum distributions over your lifetime with a Roth IRA. With retirement plan accounts and traditional IRAs, you’re generally required to withdraw a certain amount every year once you reach age 70-1/2. If you’re rolling to a traditional IRA, make sure the rollover funds go directly from your old plan’s trustee to the rollover IRA’s trustee or custodian to avoid having income tax withheld on the taxable portion of your distribution.	Keep in mind The plan may not accept certain types of rollovers from other plans, or Roth or after-tax money. Make sure the rollover funds go directly from your old plan’s trustee to your new plan’s trustee to avoid having income tax withheld on the taxable portion of your distribution. There may be a waiting period before you can move your money into your new plan. Your investment options are limited to what is offered in your new plan. You’re subject to the rules and restrictions of your new plan. To roll a retirement plan account from a former employer to a new American Funds plan, you’ll need an Incoming Rollover Request form, available from the American Funds plan’s representative.

Roll to an IRA

Move to a new plan

Benefits

Your money can continue to grow tax-deferred.

You can consolidate multiple retirement accounts.

Benefits

Your money can continue to grow tax-deferred.

You have your retirement assets conveniently consolidated with one provider.

Keep in mind

Roth 401(k) or 403(b) accounts will be rolled into a Roth IRA. Non-Roth accounts can be rolled into a traditional or Roth IRA. You’ll be responsible for any unpaid taxes on the taxable portion of a Roth IRA rollover.

You can avoid required minimum distributions over your lifetime with a Roth IRA. With retirement plan accounts and traditional IRAs, you’re generally required to withdraw a certain amount every year once you reach age 70-1/2.

If you’re rolling to a traditional IRA, make sure the rollover funds go directly from your old plan’s trustee to the rollover IRA’s trustee or custodian to avoid having income tax withheld on the taxable portion of your distribution.

Keep in mind

The plan may not accept certain types of rollovers from other plans, or Roth or after-tax money.

Make sure the rollover funds go directly from your old plan’s trustee to your new plan’s trustee to avoid having income tax withheld on the taxable portion of your distribution.

There may be a waiting period before you can move your money into your new plan.

Your investment options are limited to what is offered in your new plan.

You’re subject to the rules and restrictions of your new plan.

To roll a retirement plan account from a former employer to a new American Funds plan, you’ll need an Incoming Rollover Request form, available from the American Funds plan’s representative.