Rollovers: Easier than Ever
If you’ve worked for one or more employers in the past, you may have left your retirement assets in your former employer’s qualified plan. But many retirement savers find that having just one retirement account to manage is the easiest way to plan for a more secure retirement.
If you want to consider the "just one retirement account" approach, there’s good news: The money you have in your other retirement plan(s) can, most likely, be transferred to your current employer’s plan.1 And the smartest way to move your money is through a rollover.
What Is a rollover?
A rollover is the transfer of your retirement money from one qualified, tax-deferred retirement plan to another.
What Are the Advantages of Having Just One Retirement Account?
By gathering together your retirement assets in one place, it’s easier to manage your retirement strategy and to check your progress along the way. Consolidation offers:
What if Your New Plan Doesn’t Accept Rollovers?
Although most do, not every retirement plan accepts rollovers.
Your Vested Account Balance Is $5,000 or More
If your new plan does not allow rollovers, you have two options that would allow you to maintain your account's tax-deferred status:
Your Vested Account Balance Is Between $1,000 and $4,999
Your former employer may be required to automatically roll your money into an IRA on your behalf. If this occurs, there are no immediate tax consequences, because the money is moving from one tax-deferred account to another.
Your Vested Account Balance Is Less than $1,000
Your former employer may automatically distribute your account balance to you in a lump sum—and you will owe applicable taxes and penalties—unless you reinvest your funds in an IRA or another qualified retirement plan within sixty days.
Need Personal Assistance?
The rules concerning rollovers can be confusing. So you may want to contact a financial professional or a Prudential Certified Retirement Counselor* to learn more about your options. Simply call 1-877-PRU-2100 toll free, Monday through Friday, from 8 a.m. to 6 p.m., ET, and say "Retirement Counselor."