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Tom Meaglia, ChFC®, AEP®,

CLU®, CRPC®, MSFS

Chartered Financial Consultant

Investment Advisor Representative

Chartered Retirement Planning Counselor

CA Insurance Lic. #0567507

 

Meaglia Financial Consulting

2105 Foothill Blvd., #B140, La Verne, CA 91750

 

Toll Free: 800-386-3700

Bus:         909-593-6105

Cell:         818-681-8600

Fax:         909-593-6120

 

Email: tom@meagliafinancialconsulting.com

Website: www.meagliafinancialconsulting.com

September/October 2022

Saving for Retirement in a Job-hopping World

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.


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Investment advisory services are offered through Fusion Capital Management, an SEC Registered Investment Advisor. The firm only transacts business in states where it is properly registered, or is excluded or exempted from registration requirements. SEC registration is not an endorsement of the firm by the commission and does not mean that the advisor has attained a specific level of skill or ability. All investment strategies have the potential for profit or loss.
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