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Changing Jobs or Retiring? You Have Options with Your Retirement Savings
A 401(k) account or 403(b) account from a previous employer doesn’t have to stay where it is. Understanding your choices – and their tax implications – is the first step toward making the most of your savings.
Your Four Options
1. Leave it in your former employer’s plan
Simple, but you may face limited investment choices, ongoing fees, and one more account to track.
2. Roll it into your new employer’s plan
Keeps things consolidated if your new plan accepts rollovers and offers strong investment options.
3. Roll it into an IRA
Often the most flexible path – broader investment choices, potential cost savings, and professional management. Direct rollovers avoid taxes and penalties.
4. Cash it out
Almost always the most expensive option. You’ll owe income taxes, likely a 10% early withdrawal penalty, and you’ll lose decades of potential growth.
How Hills Bank Helps
Our advisors walk you through the tax implications, timing, and paperwork of a rollover – and help you invest the proceeds according to a plan built for your goals. We handle 401(k), 403(b), and other employer plan rollovers.
Common Questions We Help with:
- How should my contributions be invested given my timeline?
- What are my options when I retire or change employers?
- Should I consolidate this with my other retirement accounts?
- How does this fit into my broader retirement income plan?
University of Iowa Retirement Plan Counseling
If you work at the University of Iowa – or another institution with a TIAA-administered retirement plan – your retirement savings come with choices that aren’t always easy to sort through on your own.
Our advisors have experience working with University of Iowa employees and understand how these plans are structured. We can help you review your current investment lineup, understand your distribution options at retirement, and think through whether a rollover makes sense for your situation.
Other Financial Resources
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A rollover conversation costs nothing – and can earn you thousands in the long run.
Disclosure
Tax strategies and concepts discussed are provided for general informational purposes only and are not intended as tax advice. Consult your CPA or tax advisor before implementing any tax-related strategy.