How to Keep an IRA After a Job Change

You are changing jobs and have the opportunity to move upward in your career. Before going any further, you need to decide what to do with your retirement savings. Of course, keep it going. Roll it over to an IRA if it is in a 401K. If it is already in IRA form, you won't have too much to do. Read on to learn how to keep an IRA after a job change.

Instructions

Difficulty: Moderately Challenging

1. Check into the current retirement savings account you hold. If your current savings plan is in a 401K (most company held savings accounts are), see if you can roll it over to an IRA. A direct transfer through the financial company keeps it tax deferred. Try very hard to keep it and not cash it out. This would mean a heavy monetary loss for you and the need to start over with your retirement savings.
2. Peruse the regulations of leaving the savings of where it is if you already have an IRA. Try to maintain as much control over the account as possible. Remember, though, if the investment strategy of your former company has been working well up until now, discuss options with the financial planners of the account to keep the same level of success. You should have a 60-day rollover period after the job change unless there are disastrous events to consider, then it may be waived.
3. Give the IRA representative your new employment information. If your IRA is through a separate banking entity and not your former employer, there is no problem. Simply switch who pays into the IRA directly. Before the job change, it was Employer A; after the job change it is Employer B.
4. Trust your financial representative. Their job is to know what your situation looks like. Keep adding to your retirement account in the same way (or even with a higher amount now that you can afford it). This will insure steady growth.

Tips & Warnings

• Update your new employment information with the financial people at the old company. They may need to get in touch with you.
• IRAs and 401Ks are very tricky. Don't try to do this alone.