Evaluate your retirement plan rollover options
There are Pros and Cons to Transfer your funds to IRA account
Roll in your old 401k to IRA account
Advantages
Your investment will be taxed until you withdraw
You can use a wide range of investment products, including mutual funds, ETFs, stocks, bonds, options, and more
You will have access to a wide range of tools, resources, and services
You can have the flexibility to convert it into a Roth IRA
You can choose to transfer assets to a future employer plan at a later time
In exceptional cases, you can withdraw money without penalty before the age of 59 and a half (e.g. higher education expenses, health insurance or first-time home purchase)
Your TDA IRA account will not be subject to account maintenance fees
Disadvantages
You will not be able to borrow from your account
All outstanding planned borrowings need to be repaid before rolling over, otherwise you may have income tax and a 10% penalty tax
Your investment activities may generate transaction-related expenses, including commissions
In your IRA account, you may not be able to choose the exact same investment as you originally planned
The level of asset offset protection in your IRA account will be lower than the assets you plan
If you hold a stock in a former employer's plan account, there may be tax consequences and you should consult a tax advisor
Keep ingons in the former employer's plan
Advantages
Your investment plan options may include low-cost, institutional-level products
Your total cost or less than other options
Your investment will continue to be tax-deferred until you withdraw
You may be able to borrow from your account
You may not need to take any action or fill in additional documentation
If you leave your former employer at age 55-59, you may be exempt edited without penalty
Your retirement plan balance or is protected from recovery by lenders or legal decisions
You may still be able to roll in your future employer's plan at a later time
You can still use investor education, mentoring, or planning services for program participants
Investment selection in your plan menu is selected by the plan trustee
Disadvantages
Your investment is limited to selecting products offered by the program
Your former employer may pass on the management or record editing costs of certain plans to you
Although you are still participating in the program, you can't put in new money
Effort when managing investment dues in multiple accounts
Rolling assets to a new employer's plan
Advantages
Your total cost or less than other options
Your investment will continue to be tax-deferred until you withdraw
You may be able to borrow from your account
If you leave your former employer at age 55-59, you may be exempt edited without penalty
Your retirement plan balance or is protected from the recovery of a lender or legal decision
Your plan options can include low-cost, institutional investment grade products
You can still use the investor education, mentoring, or planning services provided by the new employer to program participants
Investment selection in your plan menu is selected by the plan trustee
If you roll in to a new employer plan, you may not need to withdraw the Minimum Requirement Allocation (RMD) if you decide to continue working
Disadvantages
Your investment is limited to selecting products offered by the program
Your new employer may pass on administrative or recorded costs of certain programs to you
You may need to fill in a document to transfer assets
If you hold a stock in a former employer's plan account, there may be tax consequences and you should consult a tax advisor
Withdrawal of cash allocations
Advantages
Your funds (deductible tax and related penalties) will be available to you immediately
Disadvantages
Your retirement savings will be exhausted
If you are under 59 and a half years old, the amount of your withdrawal will be forced to withhold 20% federal tax
Your distribution will be subject to federal, state, and local taxes
If you are under 59 and a half years old, you or are charged a 10% fine
