MINT HILL, NC – If your employer gets bought out, what should you do with your 401(k), 403(b), or 457(b) retirement plan?
Basically, you have four choices.
First, you could cash out your plan, but you’d have to pay taxes and possibly penalties.
Second, you could leave your plan with your former employer’s plan administrator, if allowed. This might be a good choice if you liked your old plan’s investment options. You wouldn’t be able to make new contributions, but you’d still enjoy the benefits of tax deferral.
Third, you could move your account to your new employer’s plan. Just make sure you understand your new investment choices and the fees involved.
Finally, you could rollover your account to a traditional IRA. You’d be able to invest your money in almost any type of vehicle – stocks, bonds, mutual funds, and more, and your money could continue to grow tax-deferred.
There’s no one “right” choice for everyone. Consult with your tax advisor and financial professional to determine which option may be best for you. You’ve worked hard to build your retirement account and you’ll need it to help pay for your years as a retiree.
If you have any questions, please contact me at (980) 859-2549 or by e-mail at firstname.lastname@example.org
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor