Retirement fund rollovers, done in the right way, protect your retirement money from yourself!
Most of us will – sooner or later – change employment, be laid off, or start your own business. In the excitement of the moment you often forget, or couldn't be bothered, to protect your investment in your retirement provision plans.
It was certainly what happened to me when I changed jobs! If I could have had my way I would have raided my retirement savings accounts there and then for the short-term windfall if it became available.
Today I know I was immensely stupid in doing that. I can't blame the lack of advice at the time, because I didn't seek advice! I thought I knew it all.
Retirement provision plans are sort of subsidized by government in the sense that your contributions and income would be tax free. Often even your employer's contribution is tax free. The longer contributions are maintained and earnings of the fund untaxed, the faster your retirement account grows! This is done to motivate you to start saving for retirement early and to reward you for doing so.
Traditional retirement provision accounts older than two years can invariably be rolled over into a new plan at your new employer, or into an individual retirement account if a new plan is not immediately available. This can be done without tax implications and penalties, but there are strict rules and a time limit for the rollover to be completed.
Don't make the same mistake I made. Don't even think about paying the tax and penalties to get your hands on the savings! Use the retirement fund rollover protection provided to you to protect your retirement money from yourself.
If you are in the United States of America you can download a handy Rollover Chart in PDF format from the Web site of the IRS. It shows you the rollover options you have for your current retirement provision plan.
Seek advice. Find a Rollover Specialist to advise you on your specific situation. Resist your urge to raid the kitty! Years later, when you retire, you'll be glad that you heeded my advice!
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