We’re just checking in with our Lockheed Martin friends who may be affected by the merger with Leidos and to make sure you are aware of your retirement plan options as you adjust to your new employment situation.
You may have an important deadline, so please email email@example.com or call 281.990.7100 if you have any questions or concerns! Feel free to share this email with your colleagues. A referral is the best compliment you can give us and we invite you to participate in our active gift-card referral program. Here is a quick summary for your convenience.
What To Do With An Old 401(k)? You Have Four Options:
- Leave your money where it is.
- Transfer your money into your new employer’s 401(k) plan.
- Cash out of the 401(k) altogether.
- Roll the money over to an IRA.**
Moving your money into an IRA is the option most people take because it gives you more investment choices, allows you to choose your own advisor, and has looser withdrawal rules. Although this is a popular choice and one we often recommend, don’t just roll your 401(k) over because you think you’re supposed to. Do it because you’ve taken the time to educate yourself on your options. If you use an advisor, just make sure they have your best interest in mind.
What choice is right for you? It depends upon your circumstances and what you are trying to accomplish. If you would like a little direction as you make this important decision, we’re here for you.
** If your employer-sponsored plan account holds significantly appreciated employer stock, you should carefully consider the negative tax implications of transferring the stock to an IRA against the risk of being overly concentrated in employer stock. You should also understand that your financial advisor may earn commissions or advisory fees as a result of a rollover that may not otherwise be earned if you leave your plan assets in your old or a new employer-sponsored plan and that there may be account transfer, opening and/or closing fees associated with a rollover.
This list of considerations is not exhaustive. Your decision whether or not to rollover your assets from an employer-sponsored plan into an IRA should be discussed with your financial advisor and your tax professional. If you are considering rolling over money from an employer-sponsored plan, such as a 401(k) or 403(b), you may have the option of leaving the money in the current employer-sponsored plan or moving it into a new employer-sponsored plan. Benefits of leaving money in an employer-sponsored plan may include access to lower-cost institutional class shares; access to investment planning tools and other educational materials; the potential for penalty-free withdrawals starting at age 55; broader protection from creditors and legal judgments; and the ability to postpone required minimum distributions beyond age 70½, under certain circumstances.