Gold 401k or 403b?

What Happens if I Change Jobs?

Today, the average person works 2.3 years at a job before changing it. Often, when you do change jobs and companies, you have to decide what to do with that 401k, 403b or other retirement plans you have built while there. You then have to quickly assess the pros and cons of the options you have. Some will serve you well; some could prove utterly disastrous.

Your worst option would be to take the cash dispersal. It is tempting, that is for sure. But if you did take a lump-sum distribution and are under age 59 1/2, there are a few things that you will want to discuss with your tax advisor. First, the IRS could withhold 20% of your funds in anticipation of the income tax you'll have to pay. Also, there could be a 10% early with-drawl fee. So, you could see up to 30% of your retirement proceeds simply vanish, and possibly more if you have a high tax rate. Needless to say, this could rank among the worst of all choices.

Depending on your new jobs retirement plan you could roll your old plan over into your new jobs new one. Each company has different rules and regulations regarding retirement plans. Some firms will match employee contributions and some will not. You may find that your new companies 401(k) restricts investment options far more than your past plan did and may leave few investment choices (if they have a 401k). The best plans would permit a broad range of investment flexibility with no cost for switching among them. Unfortunately, these plans are tough to find.

The best option would be a Self-Directed IRA: Your Take Control Option. With a self-directed IRA, you have the option to rollover your old 401k or 403b, and maintain the tax-deferred benefits while avoiding taxes and penalties. But there is another important reason why this might be your best plan-successor choice: you will have the greatest range of options in funding your plan and could minimize some of the risks. You can direct the investing yourself rather than be limited to the options some new plan administrator decides upon. For a portion of your retirement assets, the Gold IRA may offer a great way to diversify your assets.

* Call Regal Assets to diversify your retirement plan at 1-877-962-1133