Move the Distribution to New Plan

Move the Distribution to New Employer's Plan

Let’s take a look at a third option: Moving the distribution to your new employer’s plan.

This tactic has many of the same advantages and disadvantages as keeping assets in your previous employer’s plan.

On the plus side, the assets may grow taxdeferred, just as they did in your previous employer’s plan.

Furthermore, your assets are all in the same place. As a result, tracking the progress of your retirement plan is simple and efficient.

But there is a potential down side

There may be a lack of investment choices in the new plan.

Are they limited to company stock and a fixed account, or do you have a choice of professionally managed options that offer ample diversification?

Just as with the plan where the assets are now, it’s possible that your new employer’s plan could have the same estate planning issues.

As mentioned previously, the ability to name a beneficiary may be limited by the terms of a qualified retirement plan and generally can’t be changed after your death. Please research these possible complications before you decide to move assets.