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David P. McCabe,
WMCP®, ChFC®, CLU®
Financial Planner
Nathaniel D. High, RICP®
Financial Planner
Nicholas J. Over, CFP®
Financial Planner
Sara E. Martin
Operations Manager
Jennifer A. McCabe
Client Service Specialist
jennifer.mccabe@prudential.com
Centuria Financial Group
2333 Baltimore Blvd Suite B
Finksburg, MD 21048
Phone: 443-952-7232
September/October 2022
Saving for Retirement in a Job-hopping World
You might change jobs for a variety of reasons—more responsibility, better pay and benefits, or relocation. When you change jobs, you’ll have to decide what to do with your retirement funds, including money you contributed and vested company contributions. Vesting refers to the portion of any employer matching funds that you own. Leaving a job before you’re vested in your employer’s retirement plan can deprive you of contributions your employer made to your account.
Retirement Plan Choices
Here are some options that are typically available. Your financial and tax professionals can help you to make informed choices.1. Cash Out Your Account
You can choose to withdraw your retirement savings when you leave a job. Your employer will send you a check for the balance minus any required tax withholding. If you keep the cash, income taxes may be due - and if you're under age 59 1/2, an additional 10% penalty may be due. Alternatively, you'll have 60 days to put that money, including any tax withheld, into a new tax-qualified account.2. Leave Money in Your Former Employer’s Retirement Plan
You may be able to leave your money in your former employer's plan. This might be a good option if you have a substanial account balance and like the plan's investment choices, or if your new employer does not offer a similar plan. Remember that leaving money in a previous employer's plan could make your account harder to manage.3. Move Money to a New Employer’s Plan
If your new employer permits rollovers, you may want to roll over your account balance to your new employer's plan. That way, you'll have all your retirement savings in one place, making it easier to manage your investments. By asking your former plan adminstrator to transfer the funds directly to your new account, you'll avoid tax withholding and delay paying potential taxes and penalties.4. Roll Over to an IRA
You can also ask your plan adminstrator to transfer funds directly to an individual retirement account (IRA) that you've set up. An IRA may give you a wider range of investment options than you have in an employer's plan, and you have full control.1060037-00001-00
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David P. McCabe, Nathaniel D. High, and Nicholas J. Over are Financial Planners with, and offer securities and investment advisory service through LPL Enterprise (LPLE), a Registered Investment Advisor, Member FINRA/SIPC, and an affiliate of LPL Financial.
LPLE and LPL Financial are not affiliated with Centuria Financial Group.
This newsletter is general educational information provided by a Prudential Financial Professional and is not intended to market or sell any specific products and services, but rather provide general information about the subject matter covered only.
Centuria Financial Group and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.
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