Retiring?

Are You Retiring or Changing Employers?

If the answer is YES to either, you have four options:

  1. Leave the assets in the Plan.
  2. Rollover the assets to your new employer’s Plan.
  3. Rollover the assets to a Rollover IRA.
  4. Withdraw the assets in the account.

1. Leave the Assets in the Plan

You may continue to leave the assets in the existing retirement plan as, long as the account balance stays above $7,000.  If the balance dips below $7,000, you may be forced to roll it over or withdraw it.  You will be notified before any transactions are initiated.

2. Rollover the Assets to the New Plan

You may continue to leave the assets in the existing retirement plan as, long as the account balance stays above $7,000.  If the balance dips below $7,000, you may be forced to roll it over or withdraw it.  You will be notified before any transactions are initiated.

3. 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 or Fidelity.  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” or “trustee to trustee” rollover.

4. 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

1. 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, login to your online Vanguard Participant Account.
2. If you rollover the assets to your new employer’s plan, then you may utilize the investment management services provided to you by the new plan.
3. 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 considered fiduciaries. Fee Based is NOT Fee Only. There advisors out there that claim to be Fee Only.  But in reality, they are Fee Based and earn indirect compensation, such as commissions from the investments they recommend.
4. If you wish to hire FPLCM as your personal financial advisor, please call us directly at 800-835-1969.  Our wealth management fees range from $5,000 to $15,000. Annual fee is based on the level of service selected and NOT as a percentage of assets under management. 

For more details on our services, click here.