Retirement Planning Grand Rapids
Rolling over your retirement account typically happens in two areas:
First, when people change jobs and they still have a retirement account with their former employer. They have three options: cashing it in; rolling it to a new employer’s plan; rolling it into an IRA. Retirement plan consultants will tell you that the first option is rarely a good idea as it’s a taxable event with a mandatory 20% withholding. Also, it doesn’t help build your retirement nest egg. A retirement consultant will tell you that the next two options will preserve the preferred tax status and keep your funds growing to meet your retirement goals. Second, when people retire. At retirement you have the same basic options but now most people are older and need income. Retirement consultants will tell you that it may make sense to decrease your exposure to risk as you age, as you no longer have the years necessary to recoup large losses in your retirement account. An experienced retirement plan consultant can assist you in navigating these options.