When you change jobs, you may have several choices regarding your company's retirement plan savings:
If your account balance is at least $1,000, the 401(k) plan may rollover your entire account balance automatically to a designated IRA unless you elect to have the distribution transferred to a different IRA or retirement plan, or to receive it directly. If your account is worth more than $5,000, the plan cannot pay out your account balance until you tell the plan administrator you want the money—in other words, when you consent to the distribution. So be sure to fill out your plan's 401(k) final distribution form if you want to take the money with you. If you decide to leave the money in the plan, you can do so at least until the later of the age specified in the plan or age 72, when you must begin taking required minimum distributions.
SUGGESTION: If you are required to take a total distribution, you can roll over the money into a traditional IRA or your new employer's retirement plan. You can continue where you left off in saving for your retirement.
IMPORTANT NOTE: There may be a fee involved if you leave the money in your former employer's 401(k) plan. Be sure to check with the plan administrator before making your decision.
Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC. Insurance products are offered through LPL or its licensed affiliates. Premier America Credit Union and Premier America Investment & Retirement Services are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using Premier America Investment & Retirement Services, and may also be employees of Premier America Credit Union. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of Premier America Credit Union or Premier America Investment & Retirement Services. CA Insurance License #0759204, TX Insurance License#1643255.
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