Do you have a "Zombie Plan" roaming around somewhere in your financial past? An old 401(k), 403(b), or other employer sponsored plan that's been neglected and untouched for so long that it's almost left for dead!
What you decide to do with your old "Zombie Plan" is really important regardless of whether you're still working, have changed employers, or are approaching retirement.
Your employer sponsored retirement plan is typically your most valuable retirement asset, and how you handle it could have major implications for you now and in retirement.
Today we're going to answer some important questions that you may have regarding your options for dealing with your "Zombie Plan". Most importantly we want to help you avoid a surprise tax bill or IRS penalties.
There are 5 basic options for handling old employer plans:
OPTION #1: Don't do anything.
OPTION #2: Move it to your new employer.
OPTION #3: Cash it out (P.S. Possibly the worst option due to financial repercussions!)
Moving your old plan into an IRA give you more control over your retirement assets - there are two basic ways to do this:
OPTION #4: 60-Day Rollover - You will request a check from the old plan and then you have 60 days to roll it over into an IRA.
OPTION #5: Direct Rollover to an IRA - Also called a Trustee to Trustee transfer.
Overwhelmed? You've worked hard to build up your retirement assets and you deserve to see your savings grow in a tax-efficient manner. Making mistakes with your old "Zombie Plans" can be costly, but avoidable if you know what to do. However, the biggest mistake of all is to do nothing.
You don't need to work through all of these options alone. We can show you how to: