Life Events

Changing Jobs

A crossroads in your career could open a window to many investment opportunities. Whether you are leaving or changing jobs, there are many financial decisions to consider, for both your short- and long-term needs. It's important to note that leaving your job does not have to mean leaving your money.

The first thing to do is ensure that your life and health are insured. Then, you'll want to decide what you should do with your retirement plans. People who switch employers are often faced with a big decision: what to do with the money they have accumulated in their 401k-retirement plan? You can either keep your current plan, start a new employer's plan, or you can move your eligible retirement fund to your own individual Rollover IRA account to maintain the tax-deferred status on the earnings in your account.

Choosing a rollover when leaving an employer has many advantages. It can help you build a more diversified portfolio because it gives you control of your investments. A traditional IRA offers the possibility of tax deferment with earnings remaining sheltered from taxes until funds are withdrawn after age 59 ½. If you are not yet 59 ½ years old, a rollover IRA can also gives you the flexibility to take out your money and, although you may be subject to penalties, it only applies to the amount you pull out. With qualified distributions, such as medical expenses, death and disability, an IRA can sometimes allow you to take out money without the 10% early withdrawal penalty.

Whatever road you decide to take, PNWFCU can help guide you along and make sure you're aware of the options available to you during such transitions. A CFS* Financial Advisor will evaluate the financial decisions you are facing and help you make informed decidions with your money.

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