Some plans charge participants who are no longer actively employed for services they previously received for free. On the other hand, some IRAs or Income Annuities may also charge a fee, so your cost may be less if you stay in the plan. You should check your plan provisions or consult your investment provider for more information on fees. Many employers encourage continued participation of retirees by offering special communications, workshops, and regular meetings. By staying in the plan, you maintain a relationship with your former employer.
Many states provide for similar protection, but laws vary by state.
As you make plans to leave a company, check with your Benefits Office to see how the change might affect your retirement plan options. A comparison grid offers a quick overview of your options for investing in a Rollover IRA versus leaving your retirement assets invested in your employer-sponsored plan. Using a Rollover IRA to maximize your eligible distribution from your employer's plan provides significant benefits and protects your savings from current taxes and penalties. Flexible access to your assets Some financial institutions provide convenient withdrawal services, including allowing you to establish an automatic withdrawal schedule or write checks on your funds. The ability to consolidate multiple plan distributions If you have participated in a number of employer-sponsored retirement plans over your career, a Rollover IRA may be a convenient way for you to combine your accounts and simplify retirement investing and income planning.