I’m Getting Ready to Retire. What Should I do with My Money in My Retirement Account?

Are you retired or about to retire and wondering what you should do with the funds in your retirement account? Here are a few options:

Option 1: Depending on your balance, you can keep the funds invested in your retirement plan. If you like the funds you’re investing in, it makes sense to just leave the account where it is. However, you can no longer contribute to your retirement account once you are separated from employment.

Option 2: You can rollover the funds to an IRA with Envoy Financial or another financial institution that handles IRAs. This will give you more control over your investment options and saves on taxes as rollovers are tax free until you take a distribution from the IRA.

Option 3: You can take a partial or full distribution of the account. This is one of the least desirable options. If you do this, 20% will automatically be withheld from your funds withdrawn as a prepayment of federal taxes. If you are under the age of 59.5, you may owe an additional 10% early withdrawal penalty on anything not rolled over.

If you have other questions and would like to speak with an advisor, we’d love to help lead you in the right direction.

Make sure you’re prepared for retirement. Get some valuable tips on how to make sure you’re financially prepared for retirement.