Are You Retiring or Changing Employers?
If the answer is “yes” to either, you have four options for the assets in the Plan:
- Leave the assets in the Plan.
- Rollover the assets to your new employer’s Plan.
- Rollover the assets to a Rollover IRA.
- Withdraw the assets in the account.
Leave the Assetsin the Plan
You may continue to leave the assets in the existing Retirement Plan as long as the balance of the account stays above $5,000. If the balance dips below $5,000, you may be forced to roll it over or withdraw it. You will be notified before any transactions are initiated.
Rollover the Assets to The New Plan
Assuming your new employer’s Retirement Plan accepts rollovers, you may rollover the assets to the new Plan. You will need to contact new employer’s Plan Administrator for instructions on how to initiate a rollover.Be sure to have the transfer of assets labeled as a “Rollover”. Any other type of transfer may trigger taxes and penalties.
Rollover the Assets to a Rollover IRA
You may rollover the assets to a Rollover IRA account at the custodian of your choice. We recommend using one of the discount brokerage platforms, such as Schwab, Fidelity, or TD Ameritrade. Be sure to have the transfer of assets labeled as a “Rollover”. Any other type of transfer may trigger taxes and penalties. It is best practice to have the Rollover go directly to the brokerage firm from the existing Plan, what is commonly referred to as a “custodian to custodian rollover”.
Withdraw the Assets in the Account
There may be tax consequences on the withdrawal, depending on your situation. Please consult your CPA or Tax Advisor when considering withdrawing money from your Retirement Plan account. If you are under the age of 59 ½, there is an additional 10% penalty on the withdrawal.
Managing Your Account
If you leave the assets in the Plan, the account will continue to be managed exactly as it has been before. If you want to make changes to the account, logon to your Vanguard Participant online account.
If you rollover the assets to a new Plan, then you may utilize the investment management services provided to you by the new Plan.
If you rollover the assets to a Rollover IRA account, you can manage the account yourself or hire a financial advisor. If you plan to hire a financial advisor, you should be seeking the services of Fee-Only registered investment advisors who are fiduciaries.
If you wish to hire FPL Capital Management as your financial advisor, please call us directly at 800-835-1969. Our portfolio management fees range from $1,000 to $5,000. The fee is based on the level of customization selected and never a percentage of assets under management. Our model and customize portfolios consist of DFA, Vanguard, PIMCO, WisdomTree, iShares, and private funds. For more details on our services, visit www.fplcapital.com/services/fees/