Why consider a Rollover IRA?
You’ve worked hard to build a retirement portfolio that will allow you to enjoy your “Golden Years.” How you handle a lump sum distribution could be one of the most important financial decisions of your life.
Whether retiring, leaving your employer or changing jobs, one of the most important decisions you may face is what to do with the funds you have accumulated in an employer-sponsored retirement plan. The options are plentiful, but the wrong decision can be costly, both in terms of control over investments and dollars lost.
Distribution decisions don't just come into play at the brink of retirement, either. If you have an employer-sponsored retirement account such as a 401(k), 403(b), governmental 457 (b), SIMPLE IRA, or SEP IRA, you have a distribution decision to make every time you switch jobs.
Examine your options
Your choices will vary depending on the plan type and the policies of your old employer and—if you’re switching jobs—new employer. It’s best to check with the appropriate human resources department and your personal tax adviser if you have any questions.
In general, you have four options: