WHAT ARE THE BENEFITS OF ROLLING OVER YOUR OLD WORKPLACE RETIREMENT ACCOUNT TO AN IRA MANAGED BY PENSINGER FINANCIAL?

  • We can maximize your tax-efficiency by balancing investments across tax-deferred, tax-free, and taxable accounts.

  • You will be in a more appropriate and complete portfolio based on your risk tolerance profile. This possibly takes you out of a target date fund which does NOT know your risk profile, plus the target date fund might not have you in the best portfolio for your needs because target date funds with an identical retirement date vary widely across the board.

  • An employer sponsored plan pigeon-holes you into their lineup of 20 or so investments, with Pensinger Financial, we have the entire spectrum of investments available to you.

  • We can manage your whole retirement picture instead of a small slice. Doing so allows us to look for opportunities when markets get out of line; target date funds are more rigid, therefore managers are looking after the entire fund, but not looking after your specific account.

  • If you took the money in your old workplace retirement account out of the target date fund and put it into a portfolio of investments still in the plan, it would sit there stagnant with no oversight and management except by you…with Pensinger Financial, it is one less account you have to manage and one less account you have worry about.

When you leave your employer and you're cleaning out your desk, don't forgot take your company's retirement plan with you (doing so might actually save you thousands of dollars, too).

Upon leaving you'll have tough decisions to figure out - how do I find my next job being your most important one. But don't forget about your 401(k) plan as it is probably your single biggest retirement account. So give it the attention it deserves and get it handled properly - your future self will thank you in retirement. If you need help reach out to us and we'll make your 401(k) transition very smooth and simple for you.

When you and your employer part ways (and it doesn't matter how you left) you have four options with your 401(k). Below is bit more information about each option.

ROLL IT OVER INTO AN IRA

You can roll your 401(k) / 403(b) into a new or an existing IRA. This involves minimal paperwork. The biggest advantage is now the money is in your personal retirement account so you will have better and more investment choices, and it might cost you less in fees, too. Less fees simply means more money for your retirement. Go here if you'd like to see us to review your plan so that you can make an informed decision.

ROLL IT OVER INTO YOUR NEW EMPLOYER'S PLAN

You can roll it over to your new company’s 401(k) plan if they offer one. This involves minimal paperwork and now your plan is with your new company so you have everything in one spot and not one plan at your old job and one plan at your new job. The downside is that your new employer might not have the best investment options and/or they might have high fees. A lack of good investment choices can be very detrimental to your portfolio and high fees means less money for you. Plus your plan is at the mercy of your employer.

LEAVE IT AT YOUR OLD EMPLOYER

You can leave it at your old employer, you don’t have to do anything and you just let it keep going as it was – so that’s easy to do. The downside is the same as above: your old employer might not have the best investment options and/or they might have high fees. A lack of good investment choices can be very detrimental to your portfolio and high fees means less money for you. Plus your plan is at the mercy of your employer.

CASH IT OUT

You can take the money out of the plan and get cash, but this will trigger a 10% penalty and you’ll have to pay taxes on it, too. Unless you really need the money this is a last resort and something you want to avoid. We do NOT recommend this option. If you are considering this option we strongly suggest you have a conversation with us first.