Financial considerations when making a job transition

If you're moving to another employer, you have some big decisions to make. Should you take your old employer's retirement plan money with you? Which benefit options should you choose? How will your job change impact your financial situation? These are just a few of the questions you'll need to consider.

Make an informed decision about your retirement savings

Deciding what to do with your retirement savings may not be your first consideration, but it is important. The vested balance in your employer's qualified 401(k) or 403(b) retirement plan is yours to keep.

However, this brings up the question: Should I leave my dollars in my former employer's plan, take cash, roll over my 401k or 403b money into an Individual Retirement Account (IRA) or move it to my new employer's retirement plan? Your decision should be based on the choice that offers greater access to your funds, growth potential, and tax advantages.

You have a number of options, each with different factors to consider. The following offers an overview of some things to consider, however, you may want to discuss your decision with a financial advisor, who can take into account your specific situation and cover all of the pluses and minuses. Rolling the money to an IRA may not be the best option for everyone.

Other financial planning considerations when changing jobs

Along with what to do with your retirement savings, there are other decisions you'll need to make when you change jobs. A financial advisor can help you address some of these questions:

  • Do you understand your new benefits package and options, including health care, life, long-term care, and disability income insurance? Will you need additional insurance?
  • Have you determined how your job change might affect existing employee stock options?
  • How might your income and expense changes impact your future financial goals?

Get help with financial planning during your job transition

A job transition can present many financial choices and options. Your Ameriprise financial advisor can help you make the decisions that are right for you and help position you to meet your future career and retirement goals.

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