“Is my retirement plan from my employer serving me the best way it can?” It’s a question that haunts many individuals, whether they are currently employed, have recently changed jobs, or are approaching retirement. If you have an old 401(k), 403(b), or 457 plan collecting dust from your previous job, it’s time to ask some crucial questions: Should you:
- Leave it where it is?
- Move it?
- Roll it over?
Employers design retirement plans to be a “one size fits most” solution, tailored to benefit their employees as a whole. However, when you leave your job, transition into a new role, or start planning for retirement, it’s crucial to understand that your financial situation is unique. Your life’s path, goals, and retirement plans differ from those of your former colleagues. Therefore, your old 401(k) or employer plan shouldn’t function the same way it did when you were employed there.
You might be unknowingly putting your retirement account at risk of being permanently taxable, setting off costly financial setbacks, or even facing IRS penalties. If you’re approaching retirement, making the right choices now becomes even more critical.
It’s tempting to think, “I’ll leave it as is for now,” but just like a hidden leak behind the walls of your home causing water damage and mold growth, your old retirement plan could be silently causing financial damage and eroding your future wealth.
If you haven’t taken any action regarding your old plan until now, don’t worry. The good news is that you have the opportunity to discover what options will work best for your unique circumstances.
Gain clarity and take control of your financial future by booking an appointment with a trusted wealth management advisor to uncover what might be hidden beneath the surface of your old retirement plan. Financial experts at First Community Trust would gladly answer any questions you have about your old retirement plan. We’d love to hear from you to set-up a time to assess the state of your current plan, determine the best course of action for your situation and explore ways to maximize the benefits of your old 401(k) or employer plan.
It’s not too late to take action to ensure you are on the right track and armed with the next steps to unlock the full potential of your retirement savings.