Start Consolidating 401k ira

Consolidating 401k ira

There are some potential downsides to consolidation, however.

Having accounts in more than one place can make keeping tabs more difficult.

All employers will permit you to withdrawal the funds as 1) a cash payment 2) rollover to another employer’s 401(k) or 403(b) plan or 3) rollover to an individual IRA.

Cash Payments – distributions in cash will be subject to a 20% mandatory tax withholding regardless of your age or tax situation.

Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal.

Investment Representatives are registered through CFS. The Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members.

Past performance does not guarantee future results.

**Before deciding whether to retain assets in an employer sponsored plan or roll over to an IRA an investor should consider various factors including, but not limited to: investment options, fees and expenses, services, withdrawal penalties, protection from creditors and legal judgments, required minimum distributions and possession of employer stock.

The average American will hold 11 jobs between the ages of 18 and 62, according to the Bureau of Labor Statistics (2010).